South Korea broadens rules to determine which digital tokens are securities
The new rules are designed to "prevent potential violations of the law" and protect investors' interests, according to the Financial Services Commission.
The new rules are designed to "prevent potential violations of the law" and protect investors' interests, according to the Financial Services Commission.
Bithumb owner Kang Jong-hyun denied accusations he embezzled over KRW60 billion from the company while his brother is being investigated for potential involvement in the case.
To heighten investor protection and increase market efficiency, South Korea plans a digital asset disclosure system that would operate on three major anchor points: listing, issuance, and circulation.
The South Korea Ministry of Justice's proposed tracking system is designed primarily against money laundering activities and to assist in recovering stolen funds from citizens.
The prosecutors raided the Bithumb's offices to gather evidence on the allegations of price manipulations relating to local tokens Pixel Coin and GoMoney2.
South Korean authorities say Kang Jong-Hyun was involved in stock price manipulation in Bithumb's affiliate companies like Vident, Bucket Studio, and Inbiogen using convertible bonds.
Upon launch, the exchange system will offer deposit settlement and market monitoring services and will allow for proper listing evaluations.
Gaming items converted to NFTs are considered "gifts prohibited under the Game Industry Act," and dealing with them equates to promoting speculation, according to the court ruling.
Metaverse Seoul will offer the city's residents the chance to learn about South Korea's capital, visit tourist attractions, and have access to official city documents, according to Seoul Mayor Oh Se-hoon.
The Supreme Court has ordered Bithumb to pay KRW251.4 million (US$202,400) to over 100 disgruntled investors, with each of the 132 customers to receive between $6.47 to $6,470 as part of the court’s ruling.
Paycoin, whose token is used in South Korea for payments, was ordered to secure a bank partner or have its services suspended by February 5—it chose the former.
The South Korean National Tax Service believes that Bithumb may have been engaged in tax evasion, an offense punishable by imprisonment or payment of fines.