FSC: tokenized stocks are securities in principle under Capital Markets Act

FSC: "Tokenized stocks are securities"; government begins preparing for taxation

• The Financial Services Commission stated that, in principle, tokenized stocks should be regarded as "securities" under the Capital Markets Act.
• Accordingly, the likelihood of applying existing securities-related tax laws has increased; however, actual taxation will require securing transaction data and building out tax infrastructure.
• The government is also participating in establishing the OECD’s automatic information exchange system for crypto-assets and is moving to overhaul related frameworks.

*As tokenized stocks are increasingly likely to be classified as securities rather than virtual assets going forward, related tax rules and institutional frameworks are expected to be overhauled in earnest.

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