The Financial Services Commission has announced a legislative proposal for amendments to the Electronic Securities Act and the Capital Markets Act, aimed at implementing a token securities system by February 2027.
This legislative proposal includes amendments to the 'Enforcement Decree of the Capital Markets Act,' 'Enforcement Decree of the Electronic Securities Act,' 'Regulations on Financial Investment Business,' 'Regulations on the Issuance and Disclosure of Securities,' and 'Regulations on Electronic Registration,' with a public comment period running until November 11.
The proposed amendments reflect changes discussed during the third meeting of the public-private joint token securities consultative body held in September, which outlined the 'Policy Direction for Token Securities.'
According to the proposed amendments to the sub-regulations of the Electronic Securities Act, the scope of securities eligible for tokenization includes existing structured securities such as stocks, bonds, and funds, excluding fractional investment securities.
For distributed ledger requirements, participants must consist of at least two account management institutions in addition to the electronic registration institution, and direct payments for the use of distributed ledgers for electronic registration are prohibited.
The registration requirements for issuer account management institutions, which manage accounts directly, have been set at a minimum capital of 4 billion won, one professional account manager, one internal control specialist, and two IT specialists.
To diversify the bond distribution market through tokenization, the proposed amendments to the sub-regulations of the Capital Markets Act also include the establishment of a new off-exchange trading unit for unlisted stocks, non-monetary trust beneficiary securities, and debt securities.
The investment limit for general investors in off-exchange trading is set at 100 million won based on the annual net purchase amount for each off-exchange trading platform.
A Financial Services Commission official stated, 'We will gather sufficient opinions during the legislative proposal period and ensure that industry feedback on the token securities policy direction is thoroughly discussed in the official legislative process.'
Meanwhile, the amendments to the Enforcement Decree of the Capital Markets Act, the Enforcement Decree of the Electronic Securities Act, the Regulations on Financial Investment Business, the Regulations on the Issuance and Disclosure of Securities, and the Regulations on Electronic Registration will undergo a review process by the Financial Services Commission, the Ministry of Legislation, and the Cabinet, with implementation scheduled for February 4, 2027.
* This article has been translated by AI.
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