South Korea's Financial Services Commission: Plans to expand the scope of securities tokenization to include stocks and bonds as applicable objects

The Financial Services Commission (FSC) of South Korea has announced a draft amendment to the regulations related to the institutionalization of Token Securities, planning to expand the range of securities that can be tokenized to include traditional securities such as stocks, bonds, and funds.

According to the draft amendment, traditional securities can also be tokenized, except for fragmented investment securities (non-monetary trust beneficiary securities, investment contract securities).

The relevant electronic securities regulations will also clarify the requirements for distributed ledgers, stipulating that participants must include electronic registration institutions and at least two account management institutions, and prohibit the use of distributed ledgers for direct payment of electronic registration purposes.