South Korea's FSC to Submit Two Crypto-Related Acts to National Assembly
Jessie A Ellis Jul 13, 2023 08:27
According to Newsis on July 13, the People's Power Party and the Financial Services Commission of South Korea are planning to submit amendments to the Electronic Securities Act and the Capital Market Act to the National Assembly within this month.
According to Newsis on July 13, the People's Power Party and the Financial Services Commission of South Korea are planning to submit amendments to the Electronic Securities Act and the Capital Market Act to the National Assembly within this month. The amendments aim to institutionalize token securities. Representative Yoon Chang-hyun of the People's Power Party, a member of the Political Affairs Committee, will lead the proposal.
Token Securities are securities issued in token form using blockchain technology. They enable the trading of various rights that were difficult to issue as traditional electronic securities. Theoretically, all assets, including commercial buildings, artworks, luxury goods, and intellectual property rights (IP), can be tokenized. This is why the securities industry anticipates new innovative businesses utilizing ST.
In preparation for the legislation, the Policy Committee, Political Affairs Committee, and the Special Committee on Digital Assets of the People's Power Party will hold a public hearing at 10 a.m. today. The hearing will discuss the legislation that has been prepared so far, under the title "Venture Start-up Energy UP STO (Security Token Offering)".
The upcoming legislation is expected to reflect the 'Token Securities Issuance and Distribution Regulation System Improvement Plan' announced by the Financial Services Commission in February. The improvement plan includes amending the Capital Market Act and the Electronic Securities Act to enable the issuance of token securities and establishing new account management institutions and over-the-counter trading brokerage businesses related to issuance and distribution.
Furthermore, on July 11, the Financial Services Commission (FSC) unveiled a new legislation mandating all companies that issue or manage cryptocurrencies, such as Bitcoin and Ethereum, to reveal their holdings. The objective of this bill is to augment transparency in the accounting and disclosure of crypto assets, adhering to supervisory guidelines that necessitate the accounting of every transaction involving cryptocurrencies.
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