The South Korean financial authority, the Financial Supervisory Service (FSS), is closely monitoring the Ripple vs. SEC lawsuit in the United States. The outcome of the lawsuit could potentially influence regulations in the country.
The FSS Digital Asset Research Team gathers data on the crypto market and presents it to the FSS, which will examine the lawsuit’s outcome and consider its conclusions for local regulations.
The FSS will revise regulations and formats so that token securities can be issued and distributed in accordance with relevant guidelines. It will also hold a briefing session for the industry.
The outcome of the Ripple case will impact whether crypto assets are viewed as securities in the market. Regulators in South Korea have been heavily discussing the concern about whether crypto tokens are actually securities recently.
The country’s Financial Services Commission announced plans to regulate crypto assets as securities, but this has yet to see approval from lawmakers and requires ratification.
South Korea has taken several steps to regulate the crypto market in the past year. However, the outcome of the Ripple vs. SEC lawsuit could have a particularly strong impact, as the point about whether certain crypto assets are securities is front and center.
The South Korean financial regulator is keen on regulating the crypto market and wants to put several checks and balances in place before legalizing cryptocurrencies. South Korea has also blacklisted addresses linked to North Korean groups.
