South Korea Tokenizes Stocks, Bonds Ahead of Crypto Tax Delay
South Korea's Financial Services Commission (FSC) is set to introduce tokenized trading of stocks, bonds, and funds in the country, starting February 4, 2027. This move comes as lawmakers push for a delay in the crypto income tax regime that was initially set to kick in on January 1.
The FSC has proposed expanding the scope of tokenization to cover conventional securities, including stocks, bonds, and funds, building on the current regime that only permits fractional investment products to be represented on the blockchain. The regulator is seeking comments on subordinate rules until November 11, 2026.
To issue tokenized securities in South Korea, companies must meet certain conditions, including having at least 4 billion won in equity capital and a staff with specific expertise. On the trading side, an over-the-counter licensing unit for debt securities will be introduced, alongside investor-protection limits for retail investors.