South Korea's Ministry of Finance has announced that tokenized stocks will be classified as securities rather than virtual assets, potentially subjecting them to taxation under the Capital Markets Act by the second half of the year. This decision follows the Financial Services Commission's guidelines, which categorize tokenized securities as digital assets under securities law. The Ministry is also coordinating with international tax authorities to ensure offshore transactions are taxed, emphasizing that tokenized stocks, despite their virtual form, align more closely with securities in terms of economic value and rights structure.
South Korea to Tax Tokenized Stocks as Securities by Year-End
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