Musicow likely to sustain music copyrights trading biz under sandbox program

[Photo by MK DB]

South Korea’s music copyrights trading platform Musicow will likely remain in business as the country’s top financial authority is expected to designate it as an innovative financial service to allow the platform to continue operation under regulatory supervision.

The Financial Services Commission (FSC) on Friday discussed designating Musicow and Kiwoom Securities’ music copyrights trading service as innovative financial services so they can run operations in a controlled, supervised environment, according to industry sources on Tuesday. The final decision will be made next month after an internal review.

Earlier in April, Musicow became subject to financial regulations under the Capital Market Act after the FSC determined the platform’s rights to claim royalty as investment contract securities. But Musicow was given a six-month grace period to improve seven conditions to avoid regulations. The platform has amended its system to gain preliminary approval as an innovative financial service that can avoid financial regulations.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]