South Korea’s Digital Convergence Industry Association has released a document titled "Expected Revisions to Supplementary Regulations and Detailed Guidelines for the Tokenized Securities System," setting out key areas for the country’s tokenized securities framework. The paper focuses on the scope of pooling for identical underlying assets, over-the-counter trading limits for retail investors, entry requirements for OTC venues handling non-standardized securities, a roadmap for standardized securities tokenization, and requirements for issuer account management institutions.
The document says a separate annual cap is expected for retail investors trading tokenized securities in the OTC market. It also notes that licensing standards for OTC trading venues are set to be established, alongside multiple asset valuation criteria and profit distribution methods. The detailed rules are not final yet and still need to go through legislative, public disclosure, and regulatory review procedures before being confirmed. According to the document, the new rules are expected to support a gradual expansion of tokenization from non-standardized securities such as investment contract securities and income securities to standardized securities including stocks and bonds, while also improving investor protection and market infrastructure.
South Korea’s Digital Convergence Industry Association has released a document titled "Expected Revisions to Supplementary Regulations and Detailed Guidelines for the Tokenized Securities System," laying out key points for the country’s tokenized securities framework.
The document focuses on defining the scope of pooling for identical underlying assets, setting over-the-counter trading limits for retail investors, entry requirements for OTC exchanges handling non-standardized securities, a roadmap for standardized securities tokenization (STO), and requirements for issuer account management institutions.
It says regulators are expected to impose a separate annual limit on retail investors trading tokenized securities in the OTC market. The paper also says licensing standards for OTC trading venues will be established, together with multiple asset valuation standards and profit distribution methods.
The detailed rules are still subject to legislative procedures, public notice, and regulatory review before they can be finalized. According to the document, the new framework is expected to expand tokenization step by step from non-standardized securities such as investment contract securities and income securities to standardized securities including stocks and bonds, while also improving investor protection and market infrastructure. The report was cited by EToday.
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