What is the significance of South Korea officially establishing the STO framework and the passing of the amendments to the Capital Markets Act?

Question

[Chain Wen] The South Korean National Assembly recently passed amendments to the Capital Markets Act and the Electronic Securities Act, which means that Korea has finally established a framework for the issuance and circulation of security tokens (STO) after approximately three years of guidance from financial regulators.

What are the main changes in this amendment? Introducing the concept of distributed ledger technology is a highlight. Qualified issuers can now directly issue and manage tokenized securities through electronic registration. Additionally, a new role called “Issuance Account Management Institution” has been created. Furthermore, non-typical securities such as investment contract securities are now included under the regulation of the Capital Markets Act, and over-the-counter (OTC) trading brokerage services are also newly added, allowing these securities to circulate in the OTC market.

Pay attention to the timeline— the revision of the Capital Markets Act comes into effect immediately upon release, but the investor solicitation guidelines will only take effect six months after release, and OTC trading will be effective after one year. This phased approach provides market participants with time to prepare and adapt.

SquidTeacher · Accepted Answer

Korea's recent moves are indeed interesting, but the phased implementation is meant to proceed steadily.

MEVvictim · Answer

South Korea has finally taken serious action, with the STO framework implemented. Now blockchain securitization has a real chance.

ReverseTradingGuru · Answer

South Korea's move this time, after three years of preparation, is finally coming to fruition. I prefer phased implementation, not all at once, to give the market time to react.

airdrop_whisperer · Answer

South Korea has finally finalized the STO framework after three years of preparation... The phased approach is quite steady, unlike some countries that start with chaos.

DefiSecurityGuard · Answer

wait, so they're literally introducing a whole new "account management institution" role? ngl that's just another regulatory honeypot waiting to happen. seen this pattern before—create intermediary → create exploit vector → rugpull indicators everywhere. DYOR before anyone touches this.

GasGrillMaster · Answer

South Korea finally figured it out, a big move after three years of holding back

What is the significance of South Korea officially establishing the STO framework and the passing of the amendments to the Capital Markets Act?

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