The possibility of passing legislation for token securities (STO) institutionalization has significantly increased this month. Amid fierce market competition in the private sector, attention is focused on whether delayed political moves will be completed through legislation.
The political circle is accelerating the review of STO-related bills in the August extraordinary National Assembly session. The first subcommittee of the Political Affairs Committee plans to prioritize five bills, including amendments to the Capital Market Act and Electronic Securities Act, at this month's meeting after delaying discussions last month. Experts assess that there are few contentious issues as both ruling and opposition parties have already formed a consensus on the bill's purpose and it largely aligns with the government's promotion direction.
The Financial Services Commission announced the "Regulatory Framework Improvement Plan for Token Securities Issuance and Distribution" last February, expressing its intention to incorporate STO into the institutional framework. Subsequently, it established the Capital Market Strategy Planning Division and announced a draft enforcement ordinance related to fractional investment platforms. The FSC plans to immediately begin preparing subordinate regulations and detailed guidelines after the law passes, finalizing details such as STO-dedicated market opening, intermediary company requirements, and investor protection measures. The industry anticipates that this legislation will dramatically expand STO issuance demand and investment infrastructure, with a high likelihood of the first pilot issuance case emerging in the second half of this year.
Token securities refer to issuing physical and financial assets such as real estate, bonds, and equity in digital token form using blockchain technology. It is a financial product recognized as a security under the Capital Market Act and can be legally traded. Major domestic securities firms are already taking preemptive responses through testbed participation, platform construction, and pilot project agreements.
Shinhan Investment Securities has completed testbed verification hosted by the Korea Securities Depository, and DB Securities signed a memorandum of understanding with Koscom in June to build a pilot platform. Hana Securities and LS Securities are also preparing STO issuance and distribution infrastructure by partnering with startups and renewable energy companies. However, due to the lack of legal grounds, actual commercialization has been limited, and investor protection standards and accountability remained unclear.
Experts predict that if STO bills are processed in August, subsequent digital asset legislation such as won-denominated stablecoins and cryptocurrency spot ETFs will also gain momentum.
