The South Korean Financial Services Commission (FSC), a financial regulator in the country, is making plans to publish the guidelines for security token issuance and usage in the country by the end of 2022.
This was made after the financial regulator published a report detailing the results and findings of the joint seminar. The Financial Services Commission, Capital Market Research Institute, Financial Supervisory Service, Korea Exchange, and Korea Securities Depository attended the joint seminar on September 6, 2022.
The guidelines are expected to be made public in the fourth quarter of the year, and changes to the laws may be made to accommodate security tokens.
As part of the seminar, the stakeholders discussed security tokens, especially their issuance and usage. They presented the national strategy for dealing with this type of token.
A sandbox pilot market is expected to be established before the publication of the guidelines. The financial regulator believes that before “incorporating the issuance and distribution of security tokens into the capital market discipline, it is necessary to reorganize the system to support the sound development of the market and industry based on investor protection and financial stability.”
The report discloses that it is not the final policy and that changes will be made. Once the guidelines have been published, the authorities will create the “Security Token Discipline System” by revamping the current Electronic Securities Act and Capital Market Act.
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