South Korea's National Assembly approves tokenized securities regulations, seizing the early lead in the global RWA market

Source: TokocryptoBlog Original Title: No Play Around! South Korea Ready to Dominate the Global Tokenization Market Original Link:

Overview

South Korea’s National Assembly has officially approved the regulatory framework for the issuance and trading of tokenized securities, marking a significant step forward in the country’s blockchain digital asset development. This policy is expected to accelerate growth in the digital financial market and strengthen South Korea’s position as a leader in financial innovation.

Legal Framework

The approval was passed by the National Assembly through amendments to the Capital Markets Act and the Electronic Securities Act during a plenary session last Thursday. Under the new rules, qualified issuers can use distributed ledger or blockchain technology to issue digital securities.

Applications of Digital Securities

With amendments to the Electronic Securities Act, the use of digital securities now has a clear legal basis. At the same time, revisions to the Capital Markets Act allow tokenized securities to be traded as legitimate investment contracts through brokerage firms and financial intermediaries.

The Financial Services Commission (FSC) emphasized that the purpose of this regulatory framework is not to replace existing market systems but to integrate blockchain technology into the traditional financial ecosystem.

FSC stated that the implementation of tokenization will enable securities account management based on distributed ledgers and expand the use of smart contracts in trading, issuance, and settlement processes. This technology is believed to improve the efficiency, transparency, and security of the financial system.

Implementation Timeline

After approval by the National Assembly, the bill will be submitted to the State Council and subsequently approved by the President. The process is expected to proceed smoothly, with the regulation taking effect in January 2027.

Policy Background

This move continues previous major policy shifts, as the FSC has completed rules allowing companies and institutional investors to re-engage in digital asset trading. The policy ends nearly nine years of restrictions on corporate participation in the crypto market.

Global Trends

Interest in asset tokenization is growing worldwide. U.S. regulators recently issued guidance to ease regulatory barriers and promote institutional experimentation. Several major financial institutions have already taken action, including a leading bank launching a tokenized money market fund on the Ethereum network.

Boston Consulting Group predicts that South Korea’s tokenized securities market could reach $249 billion by the end of this decade. Meanwhile, an international bank estimates the global tokenization market could grow to $2 trillion by 2028.