South Korea to Unveil Tokenized Securities Rules in July
South Korea is set to release comprehensive guidelines for tokenized securities in July 2026, marking a significant step toward integrating blockchain technology into its regulated capital markets. The Financial Services Commission (FSC) aims to fully implement the framework by February 2027, creating a legal pathway for issuing, trading, and settling tokenized assets on distributed ledgers. The July announcement will reportedly include detailed rules for tokenizing stocks, bonds, and money market funds, alongside adjustments to over-the-counter trading limits and new provisions for fractional investment products. According to FSC Vice Chairman Kwon Dae-young, these measures are designed to “institutionalize” tokenized securities while maintaining investor protections under existing financial laws. The move builds on South Koreas multi-year regulatory overhaul to accommodate security tokens. In early 2023, the FSC laid the groundwork by defining security tokens under the Financial Investment Services and Capital Markets Act (FSCMA) and releasing guidelines for their issuance and distribution. Tokens representing equity, dividends, or profit-sharing rights can now be classified as securities, subject to the same oversight as traditional financial instruments. South Koreas leadership in tokenized finance is becoming increasingly evident. Earlier this year, the Ministry of Economy and Finance announced a pilot program to use tokenized deposits for government spending, with