South Korea Advances Tokenized Securities Framework Amid Crypto Regulation Push

As South Korea intensifies its push for crypto regulation, lawmakers have superior a invoice to determine a authorized framework for issuing and buying and selling safety token choices (STOs) utilizing distributed ledger know-how (DLT).

Lawmakers Amend Framework For Tokenized Securities

On Thursday, South Korea’s National Assembly handed key amendments to the Capital Markets Act and the Electronic Securities Act, making a authorized framework for the issuance and distribution of tokenized securities.

According to an official authorities release, the revised guidelines outline tokenized securities as a broad class that extends to each debt and fairness merchandise, and acknowledge them as reputable monetary devices.

The amendments to the Electronic Securities Act will permit certified issuers to launch tokenized securities utilizing distributed ledger know-how. Meanwhile, the Capital Markets Act adjustments will allow the merchandise to be traded as funding contract securities on brokerages and different licensed intermediaries.

Notably, the prevailing Capital Markets Act prohibited the distribution by way of securities corporations, deeming funding contract securities “unsuitable for distribution as a consequence of their non-standard traits.”

The adjustments are “anticipated to reinforce accessibility to investments and enhance the supply of funding info for these securities,” the official authorities launch acknowledged.

After legislative approval, the invoice will probably be submitted to the State Council, adopted by official presidential promulgation. Therefore, the laws is predicted to be enacted one 12 months after being signed into regulation, tentatively in January 2027.

Moreover, the Financial Services Commission (FSC) is about to steer the implementation, forming a joint “Token Securities Council” with related businesses to make sure seamless preparatory work, together with the event of supporting infrastructure and enhanced safeguards.

The session physique will comprise the FSC, the Financial Supervisory Service, the Korea Securities Depository, the Financial Investment Association, trade contributors, and consultants.

South Korea’s Crypto Regulatory Push Continues

This main step follows South Korea’s efforts to develop and set up clear, complete guidelines to control the native crypto trade. Last week, the federal government shared its 2026 Economic Growth Strategy, which included a plan to open its market to Bitcoin (BTC) Exchange-Traded Funds (ETFs) this 12 months.

Crypto-based ETFs have been banned in South Korea since 2017. In 2024, the nation’s regulator reaffirmed its stance after the US Securities and Exchange Commission (SEC) permitted the funding merchandise. However, it has now cited the success of the US and Hong Kong’s crypto funds as a key issue for his or her shift.

The FSC may even speed up the subsequent section of its digital asset laws this quarter to determine a transparent regulatory framework for stablecoins. As reported by Bitcoinist, South Korea’s Second Phase of the Virtual Asset User Protection Act was delayed till the beginning of 2026 as a consequence of an ongoing disagreement between the FSC and the Bank of Korea (BOK).

The monetary authorities have been clashing for months over guidelines associated to the issuance and distribution of stablecoins, disagreeing on the extent of banks’ function within the issuance of won-pegged tokens.

Nonetheless, the primary insurance policies of the crypto framework have been determined, set to incorporate investor safety measures, akin to no-fault legal responsibility for crypto asset operators and isolation of chapter dangers for stablecoin issuers.

Moreover, the nation is lifting its long-standing ban on institutional crypto buying and selling, which is anticipated to start later this 12 months. According to native reviews, the FSC is contemplating a rule to restrict company cryptocurrency investments at 5% of an organization’s fairness capital.

Under the newest proposal, eligible corporations would be capable to allocate as much as 5% of fairness capital per 12 months to digital belongings, restricted to the highest 20 cryptocurrencies by market capitalization. The closing draft model could possibly be launched as early as January or February.