#CapitalMarketsAct

South Korea’s Finance Ministry Classifies Tokenized Stocks as Securities, Taxation Could Begin in H2

South Korea’s Ministry of Strategy and Finance has officially classified tokenized stocks as securities under the existing Capital Markets Act. This regulatory stance signals that digital assets representing traditional equity ownership will soon fall under strict financial oversight. The Financial Services Commission is expected to publish formal security token guidelines in July 2023 to solidify this legal framework. If confirmed, these assets will be subject to capital gains and securities transaction taxes starting as early as the second half of 2023. Platforms and exchanges facilitating these trades will be required to register with financial authorities and adhere to mandatory reporting standards. This development represents a significant shift toward integrating digital asset trading into traditional financial regulatory structures. By establishing this precedent, the South Korean government aims to ensure investor protection and tax compliance across the evolving RWA landscape.

cryptorank.io·Jul 2