Financial Services Commission Aims to Establish Security Token Guidelines This Year... "Incorporated into the Electronic Securities System"

So-Young Kim, Vice Chairman of the Financial Services Commission
[Photo by Financial Services Commission]

[Asia Economy Reporter Lee Jung-yoon] The Financial Services Commission (FSC) will establish guidelines for Securities Tokens (ST) within this year and work on setting up a regulatory framework.

On the 6th, the FSC held a seminar titled "Direction for Organizing the Regulatory Framework for Issuance and Distribution of Securities Tokens" at the Korea Financial Investment Association in Yeouido, Seoul. Securities Tokens refer to crypto assets that embed securities rights into blockchain-based tokens. The current Capital Market and Electronic Securities systems do not assume the use of blockchain technology or the distribution of unstandardized securities through it.

Kim So-young, Vice Chairman of the FSC, stated, "By incorporating securities tokens into the electronic securities system, we aim to enable various blockchain technologies to be utilized in securities issuance while firmly protecting investors' property rights. Regarding the distribution of securities tokens, we will prioritize using the existing verified securities market infrastructure and, through the Financial Regulatory Sandbox system, check for issues during implementation before promoting formal institutionalization."

She added, "Whether a digital asset qualifies as a securities token should be judged on a case-by-case basis by comprehensively considering all relevant factors under general principles. However, we plan to present cases with high or low likelihood of being considered securities to enhance predictability in applying capital market laws."

An FSC official explained, "Based on the feedback collected at today's policy seminar, the FSC plans to prepare and announce the 'Securities Token Guidelines' in the fourth quarter. After presenting the guidelines, starting next year, we will establish the 'Securities Token Regulatory Framework' through amendments to the Electronic Securities Act and Capital Market Act."

This content was produced with the assistance of AI translation services.