The issuance and distribution of security tokens have been approved, according to a report, by the Financial Services Commission (FSC), South Korea’s regulatory body for financial markets.
Once the regulator has finished updating the pertinent rules, Korean investors are anticipated to start trading security tokens.
According to a story in The Korea Times, officials anticipate that the revisions will not only make it possible for investors to make fractional investments but will also guarantee that holders of security tokens receive the same level of protection as investors in traditional securities.
According to reports, Lee Su-young, a representative of the regulator’s capital market section, said:
“We have decided to allow the new form of digitized securities to be issued here. This will enable investors to make fractional investments with more ease via the security token. We will also protect security token investors on par with those investing in conventional securities.”
Also stated in the study is the FSC’s desire for the Korean electronic securities and capital markets to reflect “the global investment paradigm change” by amending the pertinent sections of the pertinent laws.
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