When issuing a token, the Issuer would need to determine (1) whether such token is a Virtual Token or (2) a Financial Instrument (including Electronic Money).  If such token is neither of the two, it will be classified as a Virtual Financial Asset (Cyrptocurrency) and covered by a new law called the "Virtual Financial Assets Act".

 

Service providers such as crypto-exchanges, brokers, wallet providers, asset managers, investment advisers and market makers, are subject to a licence whereby they will be required to satisfy a number of conditions and be subject to ongoing regulation. The new law is covering  exchanges  converting fiat money to cryptocurrencies and vice-versa, as well as conversions from one cryptocurrency to another. 

 

The law is regulating the:

 

• Technology and Service Providers; and

• Content of the Whitepaper.

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