South Korea Legalizes Tokenized Securities
- South Korea legalizes tokenized securities, effective January 2027.
- Amendments focus on blockchain-assisted trading.
- FSC leads implementation with industry collaboration.
South Korea’s National Assembly has approved a legal framework for tokenized securities on January 15, 2026, amending the Capital Markets Act and Electronic Securities Act.
The legislation aims to establish regulatory clarity and infrastructure for blockchain-based securities, potentially enhancing market efficiency and attracting investment in diverse tokenized assets.
The South Korean National Assembly has passed amendments to the Capital Markets Act and Electronic Securities Act, establishing a legal framework for tokenized securities. The laws are expected to come into effect by January 2027, following a one-year preparation period.
Key players include the Financial Services Commission (FSC), which will lead the implementation efforts. The FSC will work with the Financial Supervisory Service, Korea Securities Depository, and industry experts to develop necessary infrastructure.
This legislative change is anticipated to impact various sectors by formalizing the issuance and trading of tokenized securities. Industries such as real estate, art, and financial services could see increased activity and innovation.
Financial implications involve greater adoption of blockchain technologies within financial markets. Political and regulatory frameworks in South Korea could serve as a potential blueprint for other countries considering similar measures in digital securities.
Tokenized securities offer a way to use blockchain technology for efficient securities management, expected to enhance transparency and security. The FSC noted the potential for smart contracts and distributed ledger capabilities to revolutionize traditional markets.
Historical guidelines issued by the FSC in 2023 laid groundwork for these changes. Potential outcomes include greater integration of blockchain technologies and increased market liquidity, reflecting a growing global trend towards digital asset regulation.
Quote from Financial Services Commission (FSC) Representative, Financial Services Commission: “We expect token securities to enable distributed ledger-based securities account management and greater utilization of smart contracts.”
