Catenaa, Wednesday, January 21, 2026- South Korea has advanced legislation establishing a legal framework for security token offerings, clearing the way for regulated issuance and trading of tokenized securities using blockchain technology.
The National Assembly on Thursday passed amendments to the Capital Markets Act and the Electronic Securities Act during a plenary session, according to an official government release.
The move gives legal status to tokenized securities and sets rules for their issuance, distribution and trading.
Under the revised Electronic Securities Act, qualified issuers will be allowed to issue tokenized securities using distributed ledger technology.
Amendments to the Capital Markets Act permit these products to be traded as investment contract securities through brokerages and other approved intermediaries.
The framework defines token securities broadly, covering debt and equity instruments as well as other investment products.
Authorities said the changes are expected to expand access to non-standardized investment contract securities, including those linked to real estate, art and project-based assets that previously faced distribution limits.
Following approval by the National Assembly, the bills will move to the state council and then to the president for promulgation. The laws are scheduled to take effect in January 2027 after a one-year preparation period.
The legislation builds on regulatory guidance first issued by the Financial Services Commission in 2023.
The commission will oversee implementation and form a consultation body with regulators, market institutions, industry participants and technical experts.
The group plans to develop supporting infrastructure, including distributed ledger-based account management and stronger investor protections.
South Korea is also preparing the Digital Asset Basic Act, a separate bill expected to address stablecoins and spot crypto exchange-traded funds later this year.
