South Korea’s National Assembly has passed two legislative amendments to regularize security tokens

PANews reported on January 15 that according to Digital Asset, the South Korean Congress has voted to pass amendments to the Capital Markets Act and the Electronic Securities Act, which marks that the country has officially established the issuance and circulation framework for security tokens (STOs) about three years after the financial regulatory authorities issued relevant guidelines.

The core contents of the amendment include the introduction of the concept of distributed ledgers, allowing issuers that meet certain conditions to directly issue and manage tokenized securities through electronic registration, and the establishment of a new "issuance account management agency". In addition, atypical securities such as investment contract securities will also be included in the regulatory scope of the Capital Market Law, and their circulation in the over-the-counter market will be allowed through the establishment of a new over-the-counter trading brokerage business. The amendments to the Capital Market Law will come into effect on the date of promulgation. However, the relevant provisions of the investment inducement guidelines will come into effect 6 months after the promulgation, and the provisions related to over-the-counter transactions will come into effect one year after the promulgation.

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