- South Korea is taking measures to institutionalize cryptocurrency in the country.
- The nation’s top financial regulator plans to launch a digital securities market.
- South Korea is promoting digital assets to its citizens.
South Korea is taking sincere steps toward institutionalizing the use of cryptocurrency in the country, with its top financial regulators revealing plans to launch a digital securities market on September 6.
As per reports, the digital securities market will be a separate entity from the Korea Composite Stock Price Index (KOSPI). Furthermore, the government looks to allow blockchain tokens registered as electronic securities, representing asset value or ownership, to be accepted within the market.
South Korea is taking these measures to exclusively promote cryptocurrency to its citizens. Notably, the country already has the most extensive legal framework for BTC. In 2021, the Korean government made ISMS certifications compulsory for exchanges, resulting in many Bitcoin exchanges exiting.
Amid talk of the digital securities market, South Korea’s Financial Services Commission (FSC) notified law authorities of 16 foreign cryptocurrency exchanges’ violations concerning the Specific Financial Information Act.
Moreover, FSC will be overlooking and guiding the Korea Exchange’s digital security market. While the security firms will take the role of brokers for traders, the Korean Securities Depository will examine and register the security tokens requested by the broker or issuer.
The distribution of the tokens will be carried out exactly the way it is done now, keeping in mind the security of the investors. Meanwhile, it will enable a limited number of retail transactions during the initial phase of the market.
When Korean President Yoon Suk-yeol was elected in 2022, his administration promised to legalize security tokens sale and initial coin offerings (ICO). This encouraged major security firms in South Korea, including NH, KB, and Shinhan, to plan digital asset exchange launches starting in 2023.