South Korea’s Financial Services Commission has proposed detailed rules for the issuance and trading of tokenized securities, setting out a framework that would allow stocks, bonds, funds, and some fractionalized investment securities to be issued and circulated in token form. The regulatory framework is scheduled to take effect on Feb. 4, 2027. Under the proposal, companies issuing tokenized securities while directly managing client accounts would need at least KRW 4 billion in paid-in capital and dedicated compliance and technical staff. Revisions to capital markets rules would also create a new over-the-counter bond trading license and cap annual net purchases by retail investors at KRW 100 million per OTC exchange. The proposal will be open for public comment from Friday through Nov. 11 before moving into the approval process. South Korea had previously released a three-phase roadmap to shift securities issuance and trading onto distributed ledger infrastructure.
South Korea’s Financial Services Commission has proposed regulatory details for the issuance and trading of tokenized securities, according to ChainCatcher. The proposal would allow stocks, bonds, funds, and some fractionalized investment securities to be issued and circulated in token form.
The framework is scheduled to take effect on Feb. 4, 2027. Under the proposal, tokenized securities issuers that directly manage client accounts would be required to hold at least KRW 4 billion in paid-in capital and employ dedicated compliance and technical personnel.
Proposed revisions to capital markets rules would also add a new over-the-counter bond trading license. Retail investors would face an annual net purchase cap of KRW 100 million at each OTC exchange. The proposal will be open for public comment from Friday through Nov. 11, after which it will move into the approval process.
South Korea had previously announced a three-stage roadmap to move securities issuance and trading onto distributed ledger-based infrastructure.
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