South Korea has officially legalized the issuance and trading of blockchain-based tokenized securities, following the approval of new legislation by the National Assembly. The reforms to the Electronic Securities Act and the Capital Markets Act establish a legal framework for tokenized assets, allowing them to be traded through brokerages under existing market systems. This move integrates blockchain technology into South Korea's financial markets, providing legal recognition for digital securities equivalent to traditional electronic securities.
The new framework, set to take effect in January 2027, enables the use of distributed ledger technology for securities issuance and trading, covering assets such as equities, real estate, and other real-world investments. The legislation aims to expand access to non-standard investment products while maintaining strong investor protections. The Financial Services Commission will oversee the implementation, coordinating with market institutions and technical experts to ensure compliance and operational standards.
This development aligns with South Korea's broader regulatory changes, including recent rules allowing corporate digital asset trading. The country is also working on the Digital Asset Basic Act to regulate stablecoins and crypto exchange-traded funds, reflecting a controlled expansion of digital finance access.
South Korea Legalizes Blockchain-Based Tokenized Securities
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