South Korea’s Financial
Services Commission (FSC) has approved the issuance of securities token
offerings (STO) blockchain-powered digital tokens, crypto media outlet CoinDesk Korea reported on
were previously illegal, according to FSC Chair Kim Joo-Hyun, a distribution
network is now being established. Since there is an increasing demand for
tokenized digital assets domestically and internationally, it now permits
brokerage firms in Korea to enter the securities token market. This action is
anticipated to increase local market accessibility and liquidity.
It is fair to
presume that the Korean government has carried out the necessary checks and
balances mechanism now that the official Security Token Offerings are publicly
available. The Korean government aspires to take the lead in the current
digital revolution. The FSC chairman explains how the financial organization
would eventually institutionalize these online trading environments to enable
the secure trading of token securities. This strategy's particulars will be
made public as early as February.
security tokens are treated as financial products under the Capital Markets
Act, a new regulatory entity, they cannot be traded on cryptocurrency exchanges
other than financial investment companies. Therefore, if the token is listed on
the cryptocurrency exchange, it can be traded after ending transaction support
(delisting) and going through the listing process in the digital stock market.