Korea Plans to Implement Token Securities System by the End of 2024

03/06/2023 02:07 • Blockchain Buzz • 127 views

On March 6, Lee, head of the Capital Market Department of the Korea Financial Commission (KFC), announced that amendments to the Electronic Securities Law and the Capital Market Law would be submitted in the first half of this year to lay the foundation for the issuance and distribution of token securities (ST0) in the first half of this year. Lee predicted that according to the legislative discussion of the National Assembly, the Token Securities (ST0) system could be implemented as early as the end of 2024. It is reported that the amendments to the Electronic Securities Law include the recognition of distributed ledger technology as one of the ways to digitize securities and the establishment of a new issuer account management institution. The amendments to the Capital Market Law include the establishment of over-the-counter brokerage business and the issuance of non-typical securities, such as investment contract securities and non-monetary trust beneficiary certificates.

The amendments to the relevant laws of ST0 in South Korea will be submitted in the first half of this year, and will be implemented at the earliest by the end of 2024

Interpret the above information:

On March 6, the Korea Financial Commission (KFC) announced its plans to develop a regulatory framework for token securities in Korea. The head of the Capital Market Department, Lee, revealed that amendments to the Electronic Securities Law and the Capital Market Law will be submitted in the first half of the year, setting the groundwork for the issuance and distribution of token securities in the country. This move is expected to foster the growth of the investment market in Korea and encourage financial technology (fintech) companies to leverage blockchain and distributed ledger technology to digitize securities for a seamless investment experience.

Token securities, commonly known as security tokens (STO), can be exchanged similarly to traditional securities, but with the added advantage of being digital. Digitizing securities allows for a more efficient sharing and transfer of ownership, reducing the need for intermediaries, and making the process secure, trustworthy and traceable. The market for token securities in Korea is expected to be significant, and its implementation will offer new, more modern investment opportunities, including access to different markets, assets and securities.

The amendments to the Electronic Securities Law will introduce a new issuer account management institution and recognise distributed ledger technology as one of the ways to digitize securities. The amended Capital Market Law will establish an over-the-counter brokerage business, allowing investors to purchase assets outside of official exchanges. It will also permit the issuance of non-traditional securities like investment contract securities and non-monetary trust beneficiary certificates. These changes will provide investors with more choices, meaning more opportunities for investments.

Lee expects that the legislative discussion at the National Assembly would be completed by the end of 2024, enabling the implementation of the Token Securities system in the same year. The Token Securities system is anticipated to regulate the market, reduce investor abuse and increase investor protection, enhancing the credibility of both local and foreign investors in the Korean investment market.

In conclusion, the implementation of a regulated Token Securities system has the potential to transform the investment industry in Korea and lead to the growth of the fintech industry in the country. By fostering a more efficient and trustworthy investment process, the amendments to the Electronic Securities Law and the Capital Market Law will help Korea establish itself as a leader in the digital assets market, attracting more international investors to the region.

This article and pictures are from the Internet and do not represent SipPop's position. If you infringe, please contact us to delete:https://www.sippop.com/9905.htm

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.