The South Korean National Assembly has passed two legislative amendments to regulate security tokens.

According to Mars Finance, market sources indicate that the Korean National Assembly has voted to pass amendments to the Capital Markets Act and the Electronic Securities Act. This marks the country’s official establishment of the issuance and circulation framework for security tokens (STO) after approximately three years since the financial regulatory authorities issued related guidelines. The core content of the amendments includes introducing the concept of distributed ledgers, allowing issuers that meet certain conditions to directly issue and manage tokenized securities via electronic registration, and the establishment of a new “Issuance Account Management Organization.” Additionally, non-typical securities such as investment contract securities will also be included under the regulation of the Capital Markets Act, and their circulation in over-the-counter markets will be permitted through the newly established OTC brokerage business. The revised Capital Markets Act will come into effect from the date of announcement. However, provisions related to investment solicitation will be implemented six months after the announcement, and provisions related to over-the-counter trading will take effect one year after the announcement.