(Image: Korea Bizwire)
SEOUL, Jan. 20 (Korea Bizwire) — South Korea’s financial regulator said Thursday it will open an institutional market to enable the trading of blockchain-based security tokens.
The Financial Services Commission (FSC) announced that it deliberated on its regulation innovation agenda for the capital market.
Security tokens, in general, are the issuance of securitized rights in a token format using blockchain technologies.
The FSC decided to approve and incorporate the blockchain-based digitalization of securities into the institutional system.
The FSC plans to revise the Electronic Securities Law to clear the way for security tokens to be recognized in the same way as physical and electronic securities in light of their substantive rights.
Accordingly, the property rights of the security token investors will be legally guaranteed.
In addition, those with various business ideas such as fractional investment will be able to issue security tokens without going through securities firms as long as certain requirements are met.
The FSC plans to institutionalize related platforms to ensure the safe trading of security tokens in the over-the-counter market with an investor protection system.
Kevin Lee (kevinlee@koreabizwire.com)
