Korea's FSC orders exchanges to decorate and classify crypto with securities properties

Korea's FSC orders exchanges to decorate and classify crypto with securities properties

South Korea tries to tighten the regulations to prevent unfair trade in the industry. Therefore, the Financial Services commission has five large crypto exchanges from the country to remove and classify digital assets that have similar properties such as securities.

The implosion of the once prominent Terra ecosystem tokens was the first domino stone to fell in a subsequent series of other top-class collapse. The subsequent collapse of the Hedge Gde Arrows Capital (3AC) and a series of bankruptcies and lenders such as Celsius Network, Voyager Digital, Genesis and FTX had a strong impact on the South Korean market.

FSC order

According to a local media report, the FSC said that many tokens that are noted and traded on existing crypto exchanges could be decorated or transferred to securities companies if corresponding guidelines were issued.

DAXA-a crypto exchange group that represents South Korea's largest companies such as Upbit, Bithumb, Coinone, Korbit and Gopax-is commissioned to collect the necessary feedback from every company via the department for transaction support and to forward to the supervisory authority. The closing date for entries is February 9th.

When unveiling the "work plan" for the year, the FSC emphasized the need to revise the regulatory system for "the output and distribution of partial investment items and securities for digital assets (security tokens)".

Tracking system for virtual currencies

The Ministry of Justice in South Korea also revealed plans for the development of a crypto tracking system called "Virtual Currency Tracking System" to combat money laundering initiatives and to reclaim funds in connection with criminal activities. The country essentially tries to monitor the transaction course, extract transaction -related data and to check the source of money before and after the transfer.

The assignment should take place in the first half of 2023. The development of the tracking and analysis system should begin in the second half of the year, according to the South Korean Ministry

Development comes when the Korean police authority signed numerous contracts with various domestic stock exchanges to prevent blockchain crimes. The police authority also increased the number of employees for blockchain security experts to strengthen their investigations.

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