South Korea’s Move Towards Token Securities Issuance
In a significant move toward modernizing its financial market, South Korea is set to enhance its legislative framework for token securities issuance (STO) through proposed modifications to both the Capital Markets Act and the Electronic Securities Act. These legislative changes have received a critical endorsement from the National Assembly’s Political Affairs Committee Bill Review Subcommittee, positioning the nation to establish an STO market as early as the forthcoming first half of the year.
Integration of Blockchain Technology
The revisions will officially integrate blockchain technology into the electronic securities registration process, enabling issuers to leverage this decentralized ledger system for the registration and oversight of tokenized securities. Furthermore, these amendments will regulate up-and-coming trading venues for certain investment contract securities and non-monetary trust income securities, thus legitimizing the operation of smaller investment exchanges.
Future Prospects
If these proposed changes gain approval in the National Assembly’s upcoming plenary session, South Korea can expect to see a broad range of physical assets—including real estate, art, and music copyrights—undergo tokenization and circulation within a structured legal framework.
