Huo Xing Finance reports that South Korea’s Financial Services Commission has proposed regulatory guidelines for the issuance and trading of security tokens, aiming to allow stocks, bonds, funds, and certain fractionalized investment securities to be issued and traded in tokenized form. The proposed regulatory framework is scheduled to take effect on February 4, 2027. Under the proposal, entities directly managing client accounts for security token issuance must have paid-in capital of at least 4 billion KRW and employ dedicated compliance and technical personnel. The revision of capital market regulations will also introduce a new over-the-counter (OTC) trading license for bonds and cap annual net purchases by retail investors at each OTC exchange at 100 million KRW or less. The proposal will be open for public comment until November 11, after which it will enter the approval process. South Korea previously unveiled a three-phase roadmap to transition securities issuance and trading to distributed ledger infrastructure.
South Korea Proposes Security Tokenization Rules for 2027, Sets Capital Thresholds and Retail Limits
MarsBitShare
Summary
South Korea proposes security tokenization rules for 2027, outlining capital thresholds and retail limits. Security tokens for stocks, bonds, and funds will be permitted under the new framework, effective February 4, 2027. Issuers must maintain 4 billion KRW in capital and employ compliance personnel. Retail purchases on OTC exchanges are capped at 100 million KRW annually. The proposal includes CFT measures and seeks public comments until November 11. Liquidity and crypto markets will undergo structural changes as the country transitions toward distributed ledger-based securities.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.