South Korea’s Financial Supervisory Service (FSS) is reportedly monitoring the lawsuit between the United States Securities and Exchange (SEC) and crypto firm Ripple (XRP), South Korea’s News1 reported.
The news outlet reported Feb. 14 that Ripple’s case could strongly impact how crypto assets are classified in the Asian country. It added that while digital assets like Bitcoin and Ethereum are not classified as security tokens, the classification of XRP in the US could broadly impact the classification of other altcoins as securities.
South Korea’s financial regulator previously said:
“[We 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 report added that the FSS’s Digital Asset Research team was also reviewing other foreign cases related to the crypto industry.
South Korea recently published guidelines on the regulation of security tokens and their issuance. Under this guidance, the country will regulate certain digital assets as securities under its Capital Markets Act and allow Security Token Offerings (STOs) under the Electronic Securities Act.
The US SEC and Ripple have been embroiled in a three-year legal tussle over whether XRP could be classified as a security. The case is at its closing stages, with the court expected to give a summary judgment as early as March.