Anil Moon Partner Attorney, contributed an article to Outstanding, regarding the status of virtual currency securities.

Law firm Veat’s An Il-won Partner Attorney has provided detailed explanations through the content that was contributed to the IT news media “Outstanding” regarding important issues in the virtual currency industry, specifically regarding the question of whether virtual currency securities exist.

If virtual currency is an investment security, the virtual currency exchange that mediates the trading of that security may need to obtain the same financial license as a traditional stock exchange. What caused this issue to become a vigorous legal dispute? How did the US courts interpret it? How is it interpreted in Korea? It explained these in detail.

However, in December 2020, the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs.
According to US securities law, anyone selling through an offering must register with the SEC in advance.

This is the claim that Ripple, a virtual currency, is interpreted as a security, and Ripple Labs was illegally selling unregistered securities.

If we can interpret Ripple as a security, it will first be subject to SEC regulations, just like other stocks or financial investment products, and then the same logic will apply to most other virtual currencies, leading to significant financial regulations.

Source: Outstanding (https://outstanding.kr/)

An Il-won Partner Attorney provides active advisory services on a wide range of ‘IT’ and ‘blockchain’ related matters based on a deep understanding of blockchain, and he has been appointed as a member of the Korea Bar Association’s IT Blockchain Special Committee, further enhancing his expertise in the ‘blockchain’ field.

Law firm Veat provides in-depth blockchain legal advice, based on a broad understanding of the blockchain and NFT industries, enabling businesses to overcome the uncertainties of the blockchain business environment.

If you need legal advice on virtual currency, blockchain, or a virtual currency securities review, such as a virtual currency securities review, please feel free to contact Law firm Veat at any time.

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