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South Korean National Assembly Passes Two Legislative Amendments to Standardize Security Token Offerings
Summary: According to market reports, the South Korean National Assembly has voted to pass amendments to the Capital Market Act and the Electronic Securities Act, officially establishing a framework for the issuance and circulation of security token offerings (STOs) in the country, approximately three years after the financial regulatory authorities issued relevant guidelines. The core content ...
According to market reports, the South Korean National Assembly has voted to pass amendments to the Capital Market Act and the Electronic Securities Act, officially establishing a framework for the issuance and circulation of security token offerings (STOs) in the country, approximately three years after the financial regulatory authorities issued relevant guidelines.
The core content of the amendments includes the introduction of the concept of distributed ledger, allowing issuers meeting certain conditions to directly issue and manage tokenized securities through electronic registration, while also establishing a 'issuance account management institution.' In addition, atypical securities such as investment contract securities will also be included in the regulatory scope of the Capital Market Act, and will be allowed to circulate in the over-the-counter market through the establishment of new over-the-counter trading brokerage businesses. The amended Capital Market Act will come into effect upon its publication. However, provisions related to investment solicitation guidelines will come into effect 6 months after publication, and provisions related to over-the-counter trading will come into effect 1 year after publication.
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Link: South Korean National Assembly Passes Two Legislative Amendments to Standardize Security Token Offerings [Copy]
