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 proposed regime is scheduled to take effect on Feb. 4, 2027.
Under the proposal, companies issuing tokenized securities while directly managing customer accounts would need at least 4 billion won in paid-in capital. They would also be required to maintain dedicated compliance and technical staff. The draft would also add an over-the-counter bond trading license through revisions to capital markets rules.
For retail investors, the proposal would cap annual net purchases at 100 million won per over-the-counter exchange. The public comment period runs from Friday through Nov. 11, after which the proposal will move into the approval process. South Korea had previously released a three-stage roadmap to shift securities issuance and trading onto distributed ledger infrastructure, according to Cointelegraph.
South Korea’s Financial Services Commission has proposed detailed rules for the issuance and trading of tokenized securities, according to Cointelegraph.
The proposal 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 draft, tokenized securities issuers that directly manage customer accounts would need at least 4 billion won in paid-in capital. They would also need dedicated compliance and technical staff.
Revisions to capital markets rules would add an over-the-counter bond trading license. The proposal would also limit retail investors’ annual net purchases to no more than 100 million won at each over-the-counter exchange.
The draft will be open for public comment from Friday through Nov. 11, then move into the approval process. South Korea had previously announced a three-stage roadmap to transition securities issuance and trading to distributed ledger-based infrastructure.
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