Financial Supervisory Service Forms TF to Assess Coin Securities Nature... "Providing Self-Inspection Checklist"

[Asia Economy Reporter Lee Jung-yoon] The Financial Supervisory Service (FSS) announced on the 14th that it has formed a task force (TF) to support the determination of the securities nature of virtual assets and plans to establish an external expert TF as well.

According to the FSS, a TF to support the determination of the securities nature of virtual assets circulating domestically was formed on the 10th. The TF plans to prepare a checklist for inspecting the securities nature of virtual assets, review industry inquiries, examine the technical characteristics of virtual assets in relation to the concept of securities, and provide opinions on securities determination by case.

In the case of virtual assets, if the rights acquired by investors are securities, they are subject to the Capital Markets Act. Therefore, when issuing and distributing virtual assets, it is necessary to self-assess whether they qualify as securities under the Capital Markets Act and comply with current laws and regulations. The financial authorities are making efforts to prevent legal violations in advance and protect investors by presenting judgment cases on investment contract securities, which had no prior application cases such as Musicow, and by guiding cases that are highly likely to be considered securities.

Furthermore, the FSS plans to form an external expert TF including academia, research institutes, related organizations, the securities industry, and the legal sector. Through this, it aims to broadly gather expert opinions through in-depth discussions on key issues related to the determination of the securities nature of virtual assets.

An FSS official explained, "To support the virtual asset industry's self-assessment of securities nature, we plan to receive inquiries from exchanges and hold meetings and briefings on these matters," adding, "We also plan to provide a checklist for self-inspection of securities nature."