South Korea’s Financial Services Commission has issued a notice of proposed revisions to subordinate rules tied to the institutionalization of token securities, according to Odaily, citing Yonhap News Agency. The proposal would widen the range of securities eligible for tokenization by bringing traditional instruments such as stocks, bonds and funds into scope. Under the draft, tokenization would no longer be limited to fractional investment securities, including non-monetary trust beneficiary certificates and investment contract securities. The revisions would also clarify distributed ledger requirements under electronic securities rules. Participants would need to include an electronic registration institution and at least two account management institutions. The proposal also bars the use of direct payments on a distributed ledger for electronic registration purposes.
South Korea’s Financial Services Commission (FSC) has issued a notice of proposed revisions to subordinate rules related to the institutionalization of token securities, Odaily reported, citing Yonhap News Agency.
The proposal would expand the scope of securities that can be tokenized, bringing traditional securities such as stocks, bonds and funds into the framework.
Under the draft revisions, traditional securities would also be eligible for tokenization, in addition to fractional investment securities, including non-monetary trust beneficiary certificates and investment contract securities.
The related electronic securities rules would also spell out distributed ledger requirements. The proposal says participants must include an electronic registration institution and at least two account management institutions, and it would prohibit the use of direct payments on a distributed ledger for electronic registration purposes.
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