The Korea Financial Investment Association (KOFIA) has launched a Digital Strategy Team to support the expansion of digital assets and security tokens among its member firms. Announced on January 30, 2025, this initiative is part of a broader effort to modernize South Korea's financial markets and align with global trends in financial innovation. The team will operate under the newly formed K-Capital Market Division, which also oversees pensions and taxation, reflecting a comprehensive approach to capital market modernization.
KOFIA's Digital Strategy Team aims to assist member companies in developing virtual asset-based financial products, focusing on security tokens—digital representations of traditional securities like stocks or bonds. This move is aligned with South Korea's ongoing efforts to build a regulatory framework for digital assets, following the Virtual Asset User Protection Act. The team will work on standardization, best practices, and liaise with regulatory bodies to facilitate the integration of digital assets into traditional finance.
This development positions South Korea as a leader in digital asset regulation, contrasting with other major economies like the U.S. and EU, which have taken different regulatory approaches. By empowering its financial ecosystem from within, KOFIA aims to reduce innovation costs and risks for member firms, while promising rapid development of compliant digital asset products.
KOFIA Establishes Digital Strategy Team to Boost Security Token Growth
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