Key Takeaways
- LUNA (now LUNC) shouldn’t be thought-about a safety, based on the Seoul Southern District Court docket.
- “It’s tough to view Luna Coin as a monetary funding product regulated by the Capital Markets Act,” the courtroom acknowledged.
- Earlier courts had used cautious terminology when discussing LUNA’s regulatory standing.
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Terra’s native cryptocurrency, LUNC, was deemed not a safety by the Seoul Southern District Court docket in a courtroom case involving former Terraform Labs co-CEO Hyun-seong Shin.
Not Regulated by the Capital Markets Act
South Korean authorities are making headway of their regulatory classification of cryptocurrencies.
Based on native information outlet Ilyo Shinmun, the Seoul Southern District Court docket is claiming that Terra’s native cryptocurrency, LUNC (previously LUNA), shouldn’t be thought-about a safety. “It’s tough to view Luna Coin as a monetary funding product regulated by the Capital Markets Act,” the courtroom acknowledged in a case involving former Terraform Labs co-CEO Hyun-seong Shin.
Up till now, Southern District Courts had floated quite cautious terminology when discussing LUNA’s regulatory standing, utilizing phrases such “there’s room for dispute in authorized rules” and “it’s questionable whether or not the Capital Market Act will be utilized [to LUNA]”. Ilyo Shinmun, nevertheless, experiences that the latest resolution makes use of an expression that categorically refutes the opportunity of LUNA being regulated as a safety.
The courtroom additionally firmly dismissed an attraction by prosecutors in opposition to a previous resolution to dismiss a confiscation request for Shin’s belongings. Prosecution had initially requested to grab Shin’s property—most of which consists of real-estate unfold out throughout South Korea—on the grounds that the property itself had been acquired because of felony exercise. The courtroom had dismissed the request for confiscation by arguing that it was “tough to see that the property topic to the declare [was] a property acquired by against the law or an asset derived from it.”
Final Friday, Terra frontman Do Kwon filed to dismiss fees delivered to him by america Securities and Change Fee, arguing that the U.S. regulatory company lacked the jurisdiction to sue him. Kwon is at present being held in Montenegro, the place he faces fees for doc forgery. Each america and South Korea have expressed their intention to extradite him for prosecution.
Disclosure: On the time of writing, the writer of this piece owned BTC, ETH, and a number of other different crypto belongings.
