#ElectronicSecuritiesAct
1 article tagged #ElectronicSecuritiesAct — curated RWA tokenization coverage.
South Korea to Expand Tokenized Securities to Stocks, Bonds and MMFs From Feb. 4
South Korea’s Financial Services Commission (FSC) has announced a comprehensive roadmap to expand the nation's tokenized securities market beyond fractional investment products. Starting February 4, 2025, the regulatory framework will permit the tokenization of traditional financial instruments, including privately placed money market funds (MMFs), privately placed bonds, and unlisted shares. This expansion is facilitated by an upcoming amendment to the Electronic Securities Act, which institutionalizes tokenized assets within the existing digital capital-market framework. The policy allows existing licensed securities firms and over-the-counter platforms to handle these assets without requiring new, separate licensing regimes. Furthermore, the FSC plans to eventually integrate public securities for retail investors and explore on-chain settlement structures utilizing stablecoins. By enabling the direct exchange of securities and payment instruments on blockchain networks, the initiative aims to modernize the domestic financial infrastructure. This strategic shift signals a significant move toward integrating traditional finance with distributed ledger technology, potentially increasing liquidity and efficiency in the Korean capital markets.