An overview of key legal and practical considerations surrounding the use of cryptoassets for investment and financing in South Korea, including regulatory thresholds and the rules governing ICOs.
Cryptoassets for investment and financing
Regulatory threshold
What attributes do the regulators consider in determining whether a cryptoasset is subject to regulation under the laws in your jurisdiction?
Cryptoassets may be subject to regulation depending on whether they fall within the jurisdiction of a particular existing regulation. For example, if a cryptoasset is considered a security, then it may be regulated by the Financial Investment Service and Capital Market Act. If a cryptoasset is considered a payment instrument, then it may be regulated by the Foreign Exchange Transaction Act and the Electronic Financial Transactions Act. Cryptoassets that are considered goods may be regulated by the Value Added Tax Act and cryptoassets considered to be criminal proceeds to be confiscated may be regulated by the Criminal Act or the Criminal Proceeds Concealment Regulation and Punishment Act.