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FSC, South Korean Regulator Wants Strict New Rules For Token Issuers

South Korea’s Financial Services Commission- FSC issues a report showing its new definition of cryptocurrencies. Of course, together with procedures for token issuers and punishments for non-compliance.

Then, The rules from FSC could impose onerous regulations on individuals or platforms. Particularly, those minting non-art NFT’s for trading, as well as decentralize finance projects among others.

Furthermore, The Nov. 23 report by the FSC shows items in the Act on the Protection of Cryptocurrency Users. Which of course, isn’t yet sent to the National Assembly for consideration.

More so, It draws out rules for token issuers who want to have their tokens on Korean exchanges. Also, suggesting punishments for those the FSC considers
“undue profit through market manipulation or trading on undisclosed information.”

Notably, The report first deals with token-issuing businesses, like ICO operators, Decentralized Autonomous Organizations (DAO). Then, also nonfungible token (NFT) minting services (and potentially others.)

Additionally, The FSC will want entities to submit a white paper. Also, obtain a favorable rating from a popular token evaluation service. Then, also obtain a legal review of the project, and disclose regular business reports to users.

Lastly, the FSC is not recognizing NFTs as assets to pass through regulations, though the decision is in the works for change earlier this week. More so, It also considers privacy tokens, like Monero (XMR), and stablecoins. That’s, Tether (USDT) to be cryptocurrencies, while central bank digital currencies (CBDC) are not.

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Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.