Home
News
- Incoming South Korean government is considering Initial Exchange Offerings and Security Token Offerings to overlook virtual sector.
- STO enables security tokens to represent ownership and issuer of an asset, involving tokenizing conventional assets such as properties.
- According to some sources cited by a news agency, negotiations are underway regarding proposal as some nations have already implemented similar laws.
STO, IEO Issuance For Virtual Space
As per a revelation by a news agency, Presidential Transition Committee is taking STO and IEO issuances into consideration for virtual space.
STO enables security tokens to exhibit ownership and issuer of an asset, involving tokenizing conventional assets such as stocks and properties as as collateral. Meanwhile, IEO is when as issuer issues a token via a digital asset exchange. Therefore, the plan’s approval could mean improved oversight of digital asset market.
Several Nations Identifies STOs
According to the sources cited by a news agency, negotiations are underway on proposals as prime economies have already implemented alike regulations. According to a research, specific jurisdictions are also implementing laws to identify Security Tokens more formally, eliminate obstacles from implementation os DLT in conventional securities space and implement associated protection.
Nations such as UK, US and Singapore are instances of this category.
A translated statement by an official says that, transition committee appears to be going after latest government’s digital asset policy by categorizing it into no security as well as security types. Security type digital assets are based on conventional assets. Additionally shedding light on reasons to revise Capital Market Act.
He also elaborated, in case of non-security digital assets, debate will proceed towards a route to institutionalizing President-elect Yoon’s pledge to enable ICOs and IEOs.
Also Read: Sensitivity to inflation will hurt CityCoin cryptocurrency
Pledges From Manifesto
We can jog our memory that Yoon Suk-yeol of Conservative People Power Party has made pro-crypto promises in his manifestos, similar to his Democratic Party counterpart. And since the beginning of elections previous year, the 2017 ICO ban reversal remains a regulatory topic for debate.
Domestic report shedded light on Financial Services Commissions remarked on the requirement to upgrade persisting Capital Markets Act for STO’s initiation and activation. After which, approach to provide STOs through a trading platform, involving cryptocurrencies and stock exchanges, will be reviewed.
Alongside it, FSC is supposedly planning to escalate total digital asset exchanges. Transition committee’s senior deputy spokesperson, Choi Ji-hyeon, had elaborated earlier that, nothing has been affirmed yet. Digital asset pledge is at present under internal debate and review.
Out of The Hole
With that said, it is noteworthy that South Korea have just 4 won to crypto exchanges, shedding dominance over cryptocurrency market. However now, KFB, is also reportedly asking next presidential administration of South Korea to approve domestic banks to service crypto assets.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
