“Although he admitted to helping local prosecutors classify Terra-LUNA tokens as securities,” Governor of South Korea’s Financial Surveillance Service (FSS) Lee Bok-Hyun is not d agree with the idea that cryptocurrencies cannot be considered as financial investment products or securities, according to local media. .
At a press conference on Thursday, Lee said: “As someone in the area of law and financial services, the judgment that in certain circumstances, [crypto] can be considered titles.
Lee said prosecutors also have the power to determine whether a subject is safe, noting that power does not rest solely with financial authorities.
On Wednesday, a warrant for the arrest of Do Kwon, co-founder of Terra, and five other affiliates was issued by South Korean prosecutors investigating the collapse of Terra-LUNA on suspicion of violating market law. capital.
This happened because the now defunct stablecoin and sister cryptocurrency Terra were considered securities by prosecutors.
Yoon Suk-yeol, the president of South Korea, said earlier this year that his government would regulate cryptocurrency in two ways: for tokens that look like securities and for non-securities.
While utility tokens and non-security tokens will be regulated under a new cryptocurrency law, the government intends to regulate securities-like tokens under the existing capital markets law.
While regulating the industry, South Korea is entering the Web3 market.
According to a recent article by Be[In]Crypto, South Korea’s ruling party lawmakers are crafting a law to promote the metaverse industry.
The first set of metaverse ethics was later released by South Korea’s Ministry of Information and Communication Science and Technology (ICT).
Authorities also announced last month that airdrops of cryptocurrency will be subject to a gift tax at the rate of 10% to 50%.
As new participants enter the cryptocurrency and metaverse sectors, South Korea is experiencing legislative changes.
Yoon Suk-yeol, the president of South Korea at the time, expressed his intention to lift the country’s ban on initial coin offerings (ICOs), which led to the wave of reforms that followed.
The Bank of Korea also released a local paper on August 29 on the “European Union Crypto Asset Market Act (MiCA)” in which it called for the legalization of ICOs in the country.