South Korea Prepares for STO Launch with Legislative Reforms

South Korea is taking significant steps towards embracing tokenized securities (STOs) by making key legislative changes. The National Assembly’s Political Affairs Committee Bill Review Subcommittee recently approved amendments to the Electronic Securities Act and the Capital Markets Act, paving the way for a STO circulation market launch in early 2024. These updates will officially integrate blockchain technology into the electronic registration system, enabling issuers to register and manage token securities using distributed ledger technology as part of regulated, electronic securities.