South Korea Finance Regulator Says Crypto Is Also An Investment Product

According to local media reports, South Korea’s Financial Supervisory Service (FSS) governor Lee Bok-hyun disagrees with the view that cryptocurrency cannot be viewed as financial investment products or securities, while also revealing that he assisted local prosecutors in designating Terra-LUNA tokens as securities.

Lee said at a press conference on Thursday:

“As a person in the field of law and financial services, the opinion that under certain circumstances, can be judged as securities.”

Lee stated that determining whether a topic is a security is not only the responsibility of financial authorities, and that prosecutors have the same authority.

Prosecutors in South Korea investigating Terra-demise LUNA’s filed an arrest warrant on Wednesday for Terra founders Do Kwon and five other affiliates on allegations of breaking capital markets law. This was due to prosecutors viewing Terra’s now-defunct stablecoin and sibling cryptocurrency as securities.

President Yoon Suk-yeol of South Korea declared earlier this year that his administration will regulate cryptocurrency in two ways: tokens that resemble securities and non-securities.

The government intends to regulate securities-like tokens under the existing capital markets legislation, while non-security tokens or utility tokens would be regulated under a new cryptocurrency law. The country’s financial regulators have yet to decide whether cryptocurrencies would be classified as securities.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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