South Korea advances tokenised securities rules

• South Korea has proposed rules supporting tokenised securities issuance and trading from February 2027.
• The framework covers stocks, bonds and funds, with a KRW100 million annual retail purchase limit.
• The proposals will enter a public comment period from October 2 to November 11.

South Korea’s Financial Services Commission has proposed rules for tokenised securities ahead of a February 2027 rollout.

The framework would cover tokenised stocks, bonds, funds and fractional investment securities under revised securities laws.

The commission plans to gather stakeholder views before the proposed rules move through the approval process.

Tokenised securities would use distributed ledgers shared across multiple account management entities and Korea Securities Depository.

Issuer account management entities would require KRW4 billion in minimum equity capital under the proposed rules.

The framework would also establish an additional over-the-counter licensing category for debt securities.

Retail investors would face an annual net purchase limit of KRW100 million on each over-the-counter exchange.

The initiative sets a regulatory framework for tokenised securities ahead of South Korea’s planned February 2027 implementation.