South Korean authorities are set to release detailed rules for the issuance, infrastructure, and distribution of tokenized securities, as the country advances its efforts to implement crypto market regulations in 2027.
FSC Eyes July Tokenized Securities Framework
On Friday, South Korea’s Financial Services Commission (FSC) revealed it is preparing to publish its framework for tokenized securities in July during the second meeting of the public-private joint “Token Securities Council,” launched in March.
Earlier this year, the National Assembly passed the Token Securities Institutionalization Act, which will take effect on February 4, 2027, to amend the Electronic Securities Act and the Capital Markets Act.
The changes are set to allow qualified issuers to launch tokenized securities using distributed ledger technology and enable the products to be traded as investment contract securities on brokerages and other licensed intermediaries.
FSC’s Vice Chairman Kwon Dae-young highlighted that the “upcoming token securities ecosystem must strike a balance between innovation and trust.” Therefore, the regulatory agency is reviewing measures to subordinate regulations and guidelines for the Tokenized Securities Act.
In addition, the regulator is expected to develop a phased roadmap for tokenizing existing standardized securities, such as stocks and bonds, as well as for on-chain settlements, drawing on international practices.
Discussing the best practices for eligibility and underlying assets, Kwon stated that the FSC will “We will uphold the fundamental principles of market order and investor protection, but we will not take a one-sided regulatory approach.” Notably, the regulator plans to allow the issuance of fractional investment securities by pooling underlying assets of the same type within a certain range.
He also explained that the government’s stance was to design a market structure that enhances trading efficiency, ensures fair competition, and protects users. The FSC’s Vice Chairman added that the regulator will add trading limits on OTC exchanges “in a way that allows the expansion of initial market liquidity while systematizing investor protection, so that the limits do not become a barrier stifling innovation.”
South Korea Prepares For Crypto Rules Implementation
The upcoming rules for tokenized securities come amid South Korea’s push to regulate digital assets and the local crypto market. Over the past few years, the country has worked to develop a framework to supervise the crypto industry and protect users.
Alongside the Token Securities Institutionalization Act, the government is expected to implement the Income Tax Act in 2027, with the tax authority fast-tracking the development of a tax base and tracking system to end years of delays.
As reported by Bitcoinist, South Korea’s National Tax Service (NTS) announced last month that it had begun “full-scale preparations” to implement the long-delayed crypto legislation in January of next year.
Under the Income Tax Act, crypto assets will be subject to a 20% income tax rate, up to 22% including local taxes, starting January 1, 2027. The financial authority plans to create a tax base by formally receiving pertinent data from crypto exchanges, establish a guidance framework for taxpayers subject to virtual asset income tax, and outline criteria for capital gains calculations.
Despite some efforts to abolish the crypto tax, including a People Power Party (PPP)-led bill and a petition with over 30,000 signatures, recent reports noted that the odds of abolishing or delaying it seem slim, as parliamentary petitions rarely lead to legislative action and authorities are committed to the 2027 rollout.
Meanwhile, South Korean lawmakers have repeatedly urged the government to prioritize stablecoin legislation, which has been delayed since late 2025 due to a disagreement between the Bank of Korea (BOK) and the FSC.
The total crypto market capitalization is at $2.61 trillion in the one-week chart. Source: TOTAL on TradingView
