South Korea Establishes Regulatory Framework for Tokenized Securities

South Korea has introduced a comprehensive regulatory framework to oversee the issuance and trading of tokenized securities, marking a significant advancement in the integration of blockchain technology within its financial system. The National Assembly approved amendments to the Capital Markets Act and the Electronic Securities Act, formally recognizing tokenized securities as legitimate financial instruments.

The updated legislation enables compliant security token offerings (STOs) and mandates the use of distributed ledger technology for qualified issuers. Brokerages and licensed intermediaries will now facilitate the trading of these investment contract securities, combining operational efficiencies with robust investor protections.

This regulatory clarity positions South Korea as a forward-looking jurisdiction in the digital asset space, bridging decentralized innovation with traditional financial safeguards. Market participants anticipate heightened institutional interest as the framework reduces uncertainty for blockchain-based capital formation.