South Korea Establishes Legal Framework for Security Tokens
- South Korea’s National Assembly has passed amendments to the Capital Markets Act and Electronic Securities Act, creating a legal framework for security token offerings.
- The new legislation will take effect in January 2027, following a one-year preparation period.
- Google Play will block unregistered overseas crypto apps from updates and downloads in South Korea starting January 28, affecting major exchanges like Binance.
- Only registered domestic platforms, such as Upbit and Bithumb, will remain accessible on Google Play.
- Android users account for over 80% of the South Korean market as of Q3, making this restriction impactful.
South Korea’s new legal framework aims to regulate blockchain-based issuance and trading of tokenized securities under existing securities law. The Google Play policy change aligns with the country’s regulatory direction to separate compliant digital finance from unregistered crypto activities.
With Android users constituting a significant portion of the market, the Google Play restrictions will effectively block unregistered overseas exchanges from reaching most South Korean users. (Source)
