The South Korean National Assembly has passed two legislative amendments to regulate security tokens.

PANews, January 15 – According to Digital Asset, the South Korean National Assembly has voted to pass amendments to the Capital Markets Act and the Electronic Securities Act, marking the official establishment of a framework for the issuance and circulation of security tokens (STO) in the country, nearly three years after the financial regulatory authorities released relevant guidelines.

The core content of the amendments includes the introduction of the distributed ledger concept, allowing eligible issuers to directly issue and manage tokenized securities through electronic registration, as well as the creation of a new "Issuance Account Management Institution." In addition, atypical securities such as investment contract securities will also be brought under the supervision of the Capital Markets Act, and a new over-the-counter (OTC) brokerage business will allow their circulation in the OTC market. The revised Capital Markets Act will take effect from the date of its promulgation. However, provisions related to investment solicitation guidelines will take effect six months after promulgation, and provisions related to OTC trading will take effect one year after promulgation.