South Korea Plans to Implement Security Tokenization Rules by 2027, Setting Capital Thresholds for Issuing Companies and Retail Trading Limits

Odaily News: South Korea's Financial Services Commission has proposed regulatory guidelines for the issuance and trading of security tokens, planning to allow stocks, bonds, funds, and certain fractionalized investment securities to be issued and circulated in token form. The related regulatory framework is scheduled to take effect on February 4, 2027.

According to the proposal, securities token issuance companies that directly manage customer accounts must have paid-in capital of at least 4 billion Korean won and be equipped with dedicated compliance and technical personnel. The revision of capital market regulations will also introduce a new license for over-the-counter bond trading and limit retail investors' annual net purchases at each OTC exchange to within 100 million Korean won.

The proposal will be open for public comment from Friday to November 11, after which it will enter the approval process. South Korea previously announced a roadmap to advance the shift of securities issuance and trading to distributed ledger infrastructure in three phases. (Cointelegraph)