The US Securities and Exchange Commission's (SEC) response to the Ripple case is being closely watched by the Financial Supervisory Service in South Korea. According to local media outlets, the FSS would evaluate the court's decision and take its recommendations for local legislation into account.
According to the Korean news site News 1, the Financial Supervisory Service's Digital Asset Research Unit is closely examining the Ripple lawsuit by concentrating on international instances involving virtual assets.
Previous to that, the Financial Supervisory Service provided information in its recently released, on February 6, business plan for this year, that it 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 outcome of the Ripple litigation, according to the local media, would significantly affect whether crypto assets are viewed as securities in the market. The South Korean financial authority has made many attempts to regulate the cryptocurrency industry.
Yet, because it hinges on the issue of whether some crypto assets constitute as securities, the outcome of the Ripple v. SEC action may have a particularly significant impact.
Additionally, the issue of whether crypto tokens actually constitute as securities has received considerable attention in recent conversations among South Korean regulators. The country's Financial Services Commission revealed plans to regulate crypto assets as securities. But, it still has to be ratified and has not yet been given legal sanction.
Although the bill attempts to legalize cryptocurrency, officials first want to put in place a variety of protections. South Korea has also placed addresses associated with North Korean groups on a blacklist.