South Korea proposes regulations for tokenized securities ahead of 2027
- The Financial Services Commission plans to implement regulations for tokenized securities by February 4, 2027.
- Proposed rules will allow stocks, bonds, and funds to be issued in tokenized form.
- Companies managing customer accounts must maintain a minimum equity capital of at least 4 billion Korean won (approximately $2.8 million).
- Retail investors will face a cap of 100 million won ($70,000) on annual net purchases on each over-the-counter exchange.
- Public consultation for the proposed regulations runs from November until mid-November.
These regulatory changes aim to enhance the framework for issuing and trading tokenized securities, aligning with a three-phase roadmap introduced in September for adopting distributed-ledger technology in capital markets.
With the proposed regulations set to take effect in early February, South Korea is positioning itself to facilitate the issuance of various financial instruments in tokenized formats. (Source)
