South Korea plans to implement securities tokenization rules in 2027, setting capital thresholds for issuing companies and retail transaction limits

Odaily Planet Daily News The South Korean Financial Services Commission proposed regulatory rules for the issuance and trading of securities tokenization, intending to allow stocks, bonds, funds and some fragmented investment securities to be issued and circulated in the form of tokens. The relevant regulatory framework is scheduled to enter into force on February 4, 2027.

According to the proposal, securities token issuers that directly manage customer accounts must have paid-in capital of at least 4 billion won and have full-time compliance and technical personnel. The revised capital markets regulations will also add a license for over-the-counter bond trading and limit annual net buying by retail investors to 100 million won per OTC exchange.

The proposals will be open for public comment from Friday until Nov. 11, before entering the approval process. South Korea has previously announced a three-stage roadmap to promote the transition of securities issuance and trading to distributed ledger infrastructure. (Cointelegraph)