Terra Classic is NOT a security, South Korean court rules

in crypto •  2 years ago 

Terra Classic is not a security, Korean court rules

"It is difficult to see LUNC as a financial investment product regulated by The Capital Markets Act," the Seoul Southern District Court ruled again on Feb. 16, according to a report from local news outlet Ilyo Shinmun today. The court had earlier ruled it on Nov. 15, but both rulings have been only revealed today by the news outlet.

South Korean prosecutors have now requested a judgment from Korea’s Supreme Court.

How different to the US SEC. A lack of global clarity remains. Expect the legal issues to be eventually clarified by the money.

crypto news lunc terraclassic security korea law southkorea
2 years ago by
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      ·  2 years ago  ·  

    Translated by Chrome:

    However, Koo Tae-eon, an attorney at Law Firm, who is an expert in the field of cryptocurrency, said, "This is not the judgment of the US judiciary, but the SEC's argument. They see cryptocurrency as a commodity," he said. Attorney Koo added, “In order for the purchase of cryptocurrency to be an investment contract, in addition to the right to share profits, there must be a right to distribute property during liquidation, but there is no mention of the right to distribute liquidation anywhere in the cryptocurrency white paper.”

    and

    One precedent has been confirmed that cryptocurrency does not qualify as securities. In March 2020, the Southern District Court dismissed the plaintiff's claim in a damages lawsuit filed by cryptocurrency A investors against issuer B. [...]

    At the time, the court said, "Although revenue is distributed by holding cryptocurrency A, such revenue distribution is an incidental benefit provided by issuer B to facilitate the transaction of cryptocurrency A, and is not a specific contractual right inherent in cryptocurrency A. It was presented based on the fact that it cannot be regarded as an essential function, and that the acquisition of market capitalization generated by trading the cryptocurrency itself is the biggest motive for buying cryptocurrency A, and there is a conflict of interest among investors in this regard.”

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    [-]
      ·  2 years ago  ·  

    This is also interesting, but mainly about the people involved in the LUNA crash landing.
    https://www.ilyo.co.kr/?ac=article_view&entry_id=443709
    (in Korean)

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    [-]
      ·  2 years ago  ·  

    Interesting that the Koreans focus on the lack of liquidation mechanisms in many cryptos as a sign that they are NOT securities.

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    [-]
      ·  2 years ago  ·  

    The other point is that a coin is not inherently a security just because it may also be part of a smart contract, eg. the USD is not a security just because bonds are priced in USD, the bond-contract is the security. However, strikes me this means that Defi will have a hard time proving the protocols are not creating securities contracts.

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    [-]
      ·  2 years ago  ·  

    S Korean MPs to Create Law that Distinguishes CBDCs from Crypto – Is Digital KRW Launch Imminent?
    https://cryptonews.com/news/s-korean-mps-create-law-that-distinguishes-cbdcs-from-crypto-digital-krw-launch-imminent.htm

    The media outlet reported that per an unnamed source close to the National Assembly’s Political Affairs Committee, lawmakers plan to “explicitly exclude” a “CBDC issued by the Bank of Korea and services related to the token” from regulation laid out in the forthcoming Virtual Assets Act.

    Some of that sounds stupid, eg. a bond based on a CBDC would not be a security? Sounds like the worst of what the world is expecting - those with the ability to perceive - with money as another surveillance tool; expect SpyFi and programmable money.

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    [-]
      ·  2 years ago  ·  

    Meanwhile, the woketard land of the fake-free undergoes slo-mo implosion.
    If it isn't planned, then it's a lesson in promoting the truly retarded.

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      ·  2 years ago  ·  

    South Korea FSC grants Central Bank digital asset scrutiny
    https://www.coininsider.com/south-korea-fsc-grants-central-bank-digital-asset-scrutiny/

    “The Financial Services Commission admits that it is necessary for the Bank of Korea to have the right to request data, but it is refusing to include it in the bill.”

    A comprehensive rollout of the legislation to underpin South Korea’s views on virtual assets like Bitcoin ($BTC) and Ethereum ($ETH) will be rolled out following a subcommittee meeting held tomorrow.

    Article posted today, so "tomorrow" will be 25th April; although that's the meeting, not necessarily any announcement.

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