Blockchain technology has the potential to open up an ocean of unique use cases in several fields. Gradually nations are identifying it and moving towards regulating cryptocurrency to minimize crimes and bring innovation.
According to a press release, the Financial Services Commission (FSC) of South Korea will regulate Security Tokens and allow the issuance of STOs.
Digital Assets Offering Ownership of Business Classed as Security Tokens
Security tokens utilize Distributed Ledger Technology (DLT) and represent the digital ownership of a company or its assets. STO is similar to Initial Coin Offering (ICO), except the tokens are identified as a security. They also have to follow the same regulations as securities.
The FSC has allowed the issuance of STO under the Capital Markets Law. It identifies the following cases that will fall under the category of securities.
Source: Press release
The FSC will not classify stablecoins and digital assets without an issuer as security tokens.
Blockchain Adoption in South Korea
South Korea has embraced blockchain technology and announced many public use cases. In early Jan., the capital of South Korea, Seoul, launched its own public metaverse. The metaverse primarily deals with civil complaints, consultations, and education.
The Seoul metaverse also has facilities such as a fintech lab, a corporate support center, and Seoul’s top 10 tourist attractions.
The South Korean city of Seongnam also plans to provide its citizens with non-fungible tokens (NFT) identification. The city also plans to create its digital replica in the metaverse called Metaverse Special City Seongnam.
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BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.