South Korean’s Financial Services Commission has orders five domestic virtual asset exchanges to abolish some, if not all, securities tokens.
The Financial Services Commission (FSC), formerly Financial Supervisory Commission, is South Korean government’s top financial regulator. It makes financial policies, and directs the Financial Supervisory Service. The Financial Supervisory Commission was established in 1998.
It has been found that the Financial Services Commission has delivered instructions to officials of the five major domestic virtual asset (cryptocurrency) exchanges to classify and delist ‘token securities’ among listed virtual assets.
News reports coming out of South Korea are saying, “The purpose of virtual assets with the nature of securities, regardless of the form of issuance, is ‘token securities’ rather than ‘securities tokens’.”
The media said, “If the guidelines are realized, there is a high possibility that many of the tokens that were listed and traded on existing virtual asset exchanges will be delisted or transferred to securities companies.” I drew the line saying I couldn’t do it,” he explained.
DAXA is expected to collect opinions and inquiries from each company through the transaction support division by the 9th of this month and deliver them to the Financial Services Commission.
In addition to this news, South Korea also plans to develop a crypto-tracking system (Virtual Currency Tracking System) to tackle money laundering initiatives and recover funds linked to criminal activities.
The country essentially seeks to monitor transaction history, extract transaction-related data related as well as check the source of funds before and after the remittance.
This development comes as the Korean police department inked numerous contracts with different domestic exchanges to prevent blockchain crimes. The police department also increased the headcount for blockchain security experts to help strengthen its investigations.
Preliminary details suggest that the government will launch the platform before the end of the second quarter of 2023.
