South Korea to let stocks, bonds and funds go onchain
RWA Signal Insight
InfrastructureSouth Korea’s Financial Services Commission (FSC) has unveiled a comprehensive regulatory framework to integrate stocks, bonds, and funds into its tokenized securities system. Scheduled to take effect on February 4, 2027, the framework amends the Electronic Securities Act and Capital Markets Act to treat tokenized assets as regulated securities rather than separate crypto assets. The implementation follows a three-stage roadmap, beginning with institutional-grade money-market funds, unlisted shares, and fractional investment products. To protect retail participants, the FSC has proposed a 100 million won annual net purchase limit per over-the-counter platform. The rules also allow qualifying non-financial issuers to manage their own ownership records, provided they meet strict capital and cybersecurity requirements. By mandating that distributed ledgers connect to the Korea Securities Depository, the government ensures that tokenized assets remain under existing market surveillance and legal oversight. This move signals a major shift toward institutionalizing blockchain infrastructure within a major global economy, setting a clear path for the eventual integration of onchain payment systems and stablecoins.
Key points
- South Korea will implement tokenized securities regulations on February 4, 2027.
- Retail investors face a 100 million won annual net purchase cap per platform.
- Issuers must hold 4 billion won in equity to manage their own tokenized accounts.
- Distributed ledgers must integrate with the Korea Securities Depository infrastructure.
Background
The Financial Services Commission (FSC) is the primary financial regulator in South Korea, responsible for overseeing the country's capital markets and banking sector. The Electronic Securities Act and Capital Markets Act serve as the legal foundation for how securities are issued, traded, and settled within the nation's financial system.