South Korea’s Financial Services Commission has released a report outlining its new definition of cryptocurrencies, along with planned procedures for token issuers and penalties for non-compliance.
The proposed rules could impose heavy regulations on individuals or platforms that mint non-art NFT’s intended for trading, as well as decentralized finance projects among others.
The FSC details items it suggested in the Act on the Protection of Cryptocurrency Users that has been sent to the National Assembly for consideration.
It lays down rules for token issuers who wish to have their tokens traded on Korean exchanges and suggested punishments for those the FSC has deemed to be making “undue profit through market manipulation or trading on undisclosed information.”
The report first addresses token-issuing businesses, which include ICO operators, Decentralized Autonomous Organizations (DAO), and nonfungible token (NFT) minting services (and potentially others.)
The FSC would require these entities to submit a white paper, obtain a positive rating from a recognized token evaluation service, obtain a legal review of the project, and disclose regular business reports to users.
