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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