South Korea advances tokenized securities rules ahead of 2027 rollout
South Korea’s financial regulator proposed detailed rules for tokenized securities, including capital requirements, OTC trading licenses and retail investment limits.
South Korea’s Financial Services Commission has proposed detailed regulations for issuing and trading tokenized securities as the country’s regulatory framework is set to take effect in February 2027.
The changes would allow stocks, bonds, funds and certain fractional investment securities to be issued and circulated in tokenized form.
The proposal also introduces requirements for companies issuing and managing tokenized securities. Under the proposed changes, companies issuing tokenized securities while directly managing customer accounts would need at least 4 billion Korean won ($2.8 million) in equity capital and dedicated compliance and technology staff.