South Korea Approves Tokenized Securities Rules to Modernize Markets
Lawmakers in South Korea has approved legislation to integrate tokenized securities into the country’s capital markets, formally paving the way for blockchain-based trading and settlement. The legal change creates a framework for issuing, transferring and settling security tokens alongside existing market infrastructure, signaling a shift toward digitized asset lifecycles.
The decision matters because tokenization can speed settlement, lower custody costs and enable new product structures, potentially drawing fintech firms and global issuers. Implementation will require updated exchange infrastructure, custody and compliance systems, and clear investor-protection rules — areas market participants and regulators will need to align on next. Market observers say the move keeps South Korea competitive in a broader global trend toward regulated digital-asset markets.