South Korean Authority Monitoring Ripple Vs SEC Cases Regarding Crypto Asset Classification

South Korean authorities are monitoring the development of the Ripple vs SEC case. (Photo; Doc. CryptoDailyGazette)

JAKARTA The Ripple case against US regulators is still ongoing even though it has taken three years. At the same time, the case was apparently monitored by the South Korean financial supervisory authority, Financial Supervisory Service (FSS).

The FSS is reportedly observing a lawsuit between the United States Securities and Exchange Commission (SEC) and crypto company Ripple (XRP). This news was conveyed by South Korean News1 on February 14.

According to the news outlet, the ongoing Ripple case in the United States has the potential to affect the classification of crypto assets in Asia. While Bitcoin and Ethereum are not considered safety tokens, the XRP classification in the United States could have a broad impact on the classification of other crypto assets as securities.

Previously, South Korea's financial regulators had expressed their intention to revise regulations and formats so that token securities could be issued and distributed in accordance with relevant guidelines. In addition, the FSS is also reviewing several other crypto asset cases related to the crypto industry.

Recently, South Korea has issued a security token regulation guide and its issuance. This guide stipulates that certain digital assets will be regulated as securities under the Capital Market Act, and STO will be permitted under the Electronic Securities Act.

Meanwhile, cases of legal dispute between the US SEC and Ripple related to XRP classification as a security have been going on for three years. A final decision from the court is expected to be issued in March. For South Korea, this is certainly in the spotlight and deserves to be monitored, especially in regulating crypto asset classification and its future issuance.