South Korea has taken a major step toward regulating blockchain-based finance by approving a legal framework for tokenized securities. The recent amendments to the Capital Markets Act and Electronic Securities Act set the stage for regulated issuance and trading of digital securities, signaling growing government support for blockchain innovation in finance.
Tokenized Securities Legislation
The National Assembly passed amendments allowing qualified issuers to issue tokenized securities using distributed ledger technology. These products can now be traded through brokerages and other intermediaries, integrating blockchain into traditional financial infrastructure. The amendments cover all types of securities, including debt, equity, and non-standardized investment contracts, such as those linked to real estate, art, or livestock projects.
The Financial Services Commission (FSC) emphasized that tokenized securities will enable smart contract-based account management and more efficient securities infrastructure. Implementation will involve collaboration with the Financial Supervisory Service, Korea Securities Depository, financial associations, and industry experts. The laws are expected to take effect January 2027, following a one-year preparation period.
Market Potential and Industry Impact
Industry forecasts suggest the tokenized real-world asset market could reach $2 trillion globally by 2028, while South Korea’s domestic token securities market may grow to 367 trillion won ($249 billion) by the end of the decade. Major local firms, including Mirae Asset Securities and Hana Financial Group, are already developing platforms in anticipation of the new framework, highlighting the country’s commitment to fostering regulated blockchain finance.
This legislation positions South Korea as a regional leader in tokenized financial products, offering a clear path for both domestic and institutional investors.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.