📰 Table Of Contents
Debates on Crypto as Security Cause Legal Backlog in South Korea
A new report indicates that the question of whether crypto can be considered a security is causing a legal backlog in South Korea. Judges at the Seoul Southern District Court are finding themselves drawn into debates about whether certain coins can be considered to have “security properties.”
Highest-Profile Altcoin “Price Manipulation” Cases
The Seoul Southern District Court is handling two of the highest-profile altcoin “price manipulation” cases in South Korean legal history. The court is currently dealing with various cases relating to the Terra ecosystem crash of May 2022 and the art-themed Pica Coin token. Both cases revolve around allegations of coins being knowingly sold as securities.
Pressure from US Precedents
South Korean law currently does not recognize any coin as having security status, but judges have been pressured to accept precedents from the US, where regulators have declared that some coins can be considered securities and others have commodity properties.
Difficult Crypto Decisions for Judges
Judges at the Seoul Southern District Court have been repeatedly struggling to make judgments on whether crypto can be considered a security. This is evident from their debates during every trial on the matter.
Legal Experts’ Opinions
Unnamed legal community experts claim that South Korea’s crypto market is expanding and the number of fraud cases is increasing. However, they point out that South Korea lacks a relevant legal framework to deal with such matters.
Prosecutors vs. Defense Lawyers
In the Pica Coin case, prosecutors have urged the court to consider the token to be a security, allowing them to press charges of price manipulation under the terms of the Capital Markets Act. However, defense lawyers have argued that coins are not securities under national law.
Uncertainty and Legal Debates
There are conflicting opinions among legal experts, making it difficult to definitively determine whether crypto should be considered a security. In the absence of legislative change, individual courts’ rulings on the matter will have to construct a clearer picture.
Impact on Crypto-Related Crime
These legal debates have occurred against a backdrop of rising allegations of crypto fraud and crypto-related crime in South Korea, with reports of scams, bogus OTC deals, and crypto-powered drug trafficking dominating the headlines this year.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
