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South Korea continues to implement various crypto-related regulations.
South Korean Financial Services Commission (FSC), a leading financial regulator in the country, shared its plans to launch guidelines for security tokens and the securities market for crypto tokens.
According to the press release shared on September 6th, the FSC hosted a policy seminar to discuss the “revision of the system of issuance and distribution of security tokens.”
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In the seminar, FSC met with Korea Exchange, Financial Supervisory Service, Capital Market Research Institute, and Korea Securities Depository. During the meeting, FSC highlighted that in order to “support the sound development of the market and industry,” separate guidelines for blockchain-issued securities are a must.
The FSC plans to launch its security token guidelines in the 4th quarter of 2022. After issuing guidelines, the financial regulator is set to establish the “Security Token Discipline System” by revising Capital Market Act and Electronic Securities Act.
Afterward, the financial regulator aims to launch the digital securities market supervised by the Korea Exchange (KRX). The applications and registration process will be managed by the Korea Securities Depository. However, before launching the actual market, the regulator will roll out a pilot version using a financial regulation sandbox.
Based on the project, tokens will be available “in the same method as existing securities.” Moreover, in the beginning, users will be able to use over-the-counter trading on a limited scale.
During summer, the South Korean government was relatively active in making various crypto-related decisions. On July 21st, the government postponed the 20% crypto gains taxation to 2025. Initially, the law was introduced in 2021 and was supposed to start operating on January 1st, 2022. However, the government later pushed back the law to 2023 and is now set to launch it in 2025.
Moreover, on August 22nd, The South Korean Ministry of Strategy and Finance announced that it plans to impose taxes for crypto airdrops, hard forked tokens, and staking rewards.
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