Korea Releases Tokenized Securities Regulations: Focusing on OTC Trading Limits and Exchange Access

Odaily News - The Korea Digital Convergence Industry Association has released the "Expected Revisions to Sub-regulations of the Tokenized Securities System and Detailed Guidelines" document, which primarily clarifies the scope of "pooling" for similar underlying assets, OTC trading limits for retail investors, access conditions for OTC exchanges handling non-standardized securities, the roadmap for tokenization of standardized securities (STO), and requirements for issuer account management institutions.

The document mentions that separate annual limits are expected to be set for retail investors trading tokenized securities over-the-counter. In addition, licensing standards for OTC trading venues will be established, along with the inclusion of multiple asset valuation standards and profit distribution methods.

It is reported that the detailed regulatory rules will still need to go through legislative, public notice, and regulatory review procedures before being finalized. The new regulations are expected to promote the gradual expansion of tokenization from non-standardized securities such as investment contract securities and income-bearing securities to standardized securities including stocks and bonds, while further improving investor protection and market infrastructure development. (EToday)