Cha & Kwon Law Offices analyzed the Financial Services Commission’s guidelines on fractional investment and security tokens. Based on the thorough analysis, our firm provided legal review services to a company that aims to initiate a relevant business.

The FSC provides a series of regulatory instructions for the new business field of factional investment and security tokens. It presents criteria for determining which tokens shall be considered securities and the legitimacy of fractional investment through press releases and guidelines.

In the field of pioneering new businesses such as fractional investment and security tokens, the predictability of relevant business operations is limited, and various regulatory risks are prevalent due to institutional deficiencies. The financial authorities are applying the Financial Investment Services and Capital Markets Act to the digital asset industry by announcing policy directions, but uncertainties exist in specific cases in practice.

Cha & Kwon Law Offices provides legal advice on the overall business structure and regulatory risks based on in-depth analysis and a thorough understanding of the digital asset industry. Consult with our leading legal experts if you are planning to enter the relevant fields or have regulatory inquiries.