South Korea Advances Bill to Legalize Issuance, Trading of Tokenized Securities

South Korea has taken a decisive step toward integrating blockchain technology into its capital markets. Lawmakers passed amendments to the Capital Markets Act and Electronic Securities Act, creating a legal framework for tokenized securities. The MOVE legitimizes blockchain-based financial instruments and sets clear guidelines for issuance and trading.

Under the new rules, tokenized securities will be issued via blockchain infrastructure and traded through licensed intermediaries. The regulatory framework aims to combine the efficiency of distributed ledgers with existing financial systems. Implementation is scheduled for 2027, opening doors for regulated security token offerings (STOs).

The legislation positions South Korea as a forward-looking jurisdiction in digital asset regulation. By formalizing blockchain-based securities, the country bridges traditional finance with emerging technologies. Market participants anticipate increased institutional adoption as regulatory clarity emerges.