- According to the Seoul Southern District Court, LUNA (now LUNC) should not be considered a security.
- “It is difficult to consider Lunacoin as a financial investment product regulated by capital market law,” the court said.
- Previous courts have used cautious language when discussing LUNA’s regulatory status.
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In a lawsuit involving Hyun-seong Shin, former co-CEO of Terraform Labs, Terra’s native cryptocurrency, LUNC, was deemed not collateral by the Seoul Southern District Court.
Not subject to capital market laws
South Korean authorities are proceeding with the regulatory classification of cryptocurrencies.
According to local reports First-class newspaper, the Seoul Southern District Court argues that Terra’s native cryptocurrency, LUNC (formerly LUNA), should not be considered a security. “It is difficult to consider Lunacoin to be a financial investment product regulated by capital market laws,” the court said in a lawsuit involving former co-CEO of Terraform Labs Shin Hyun-sung.
To date, the Southern District Court has used phrases such as “legal principle is debatable” and “it is questionable whether the capital market law applies” when discussing LUNA’s regulatory status. and used rather cautious terminology. [to LUNA]”. However, the Ichijo Shimbun reports that the decision this time uses an expression that categorically denies the possibility that LUNA will be regulated as a security.
The court also categorically dismissed the prosecution’s appeal against the earlier decision to dismiss Mr. Singh’s claim for confiscation of his property. Prosecutors had initially requested seizure of Shin’s property on the grounds that the property itself had been acquired thanks to his criminal activities. argued and dismissed the demand for confiscation. [was] Property acquired by crime or assets derived therefrom. “
Last Friday, Terra frontman Do Kwon filed to dismiss the charges brought by the U.S. Securities and Exchange Commission, arguing that U.S. regulators do not have jurisdiction to sue him. Kwon is currently in custody in Montenegro, facing charges of document forgery. The United States and South Korea have expressed intentions to extradite him for prosecution.
Disclosure: At the time of writing, the author of this work owned BTC, ETH, and several other crypto assets.