South Korean financial authority, the Financial Supervisory Service, is keeping a close eye on the Ripple vs. SEC lawsuit. The outcome could influence regulation in the country.
South Korean financial regulator, the Financial Supervisory Service, is closely monitoring the United States Securities and Exchange (SEC) lawsuit against Ripple. Local media outlets reported that the FSS would examine the lawsuit’s outcome and consider its conclusions for local regulations.
The Digital Asset Research Team, which falls under the FSS, gathers data on the crypto market and presents it to the FSS. It announced that it would “revise regulations and formats so that token securities can be issued and distributed in accordance with relevant guidelines, and hold a briefing session for the industry.”
The local media outlets state that whether crypto assets are viewed as securities in the market would be significantly impacted by the outcome of the Ripple case. South Korean financial regulator is keen on regulating the crypto market and has taken several steps to do so.
In fact, it has taken much of this action in the past year. However, the outcome of the Ripple vs. SEC lawsuit could have a particularly strong impact, as the point about whether certain crypto assets are securities is front and center.
South Korea Close to Comprehensive Crypto Regulation
Regulators in South Korea have been heavily discussing the concern about whether crypto tokens are actually securities recently. The country’s Financial Services Commission announced plans to regulate crypto assets as securities. However, this has yet to see approval from lawmakers and requires ratification.
The law is an effort to legalize cryptocurrencies, but regulators want several checks and balances in place before this happens. South Korea has also blacklisted addresses linked to North Korean groups.
Ripple vs. SEC Case Decision Could Happen Soon
Meanwhile, the Ripple vs. SEC lawsuit is coming to a close, with a decision expected in March. All eyes are on the case as it will have significant repercussions for the crypto market; either way, the decision goes. One of the positives is that the judgment on the LBRY token could benefit Ripple.
The XRP community and its lawyer have shown optimism about the case going Ripple’s way. However, the XRP token has struggled in recent times, attempting to break out of its stagnancy.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.