Calling for Urgent Regulation of Tokenized Securities in South Korea 🚨
South Korean industry leaders and central bank officials are urging the government to swiftly regulate tokenized securities as they await approval. At a recent Korea Securities Association summit, stakeholders from the Central Bank, regulatory bodies, and the securities industry expressed the critical need for action.
Tokenized Securities Regulations: Seoul on the Verge of Action?
During the summit, the association emphasized that “digital assets” represent the future of the financial market. Speakers advocated for Seoul to implement measures, including the legalization of tokenized securities to adapt to the changing landscape of the economy.
- Yoon Seong-kwan, the Director of Digital Currency Policy at the Bank of Korea (BOK), emphasized the necessity of tokenizing digital assets and payment methods as the economy transitions into a digital era.
- Lee Jun-seo, the Chairman of the KSA, highlighted the inevitable need for more detailed legislation on digital assets to prevent financial market instability and protect consumers.
Role of Central Bank in Tokenization 🏦
Yoon mentioned that the central bank would play a crucial role in providing the final settlement asset to support secure digital asset transactions. Additionally, Lee stressed the importance of reorganizing the financial sector’s infrastructure to accommodate Security Token Offerings (STOs) and drive economic growth.
Imperative Legislation to Remain Competitive
Industry experts, including Seo Yu-seok from the Korea Financial Investment Association, emphasized the urgency of enacting legislation related to tokenized securities to keep pace with global developments in blockchain technology. They expressed concerns that South Korea may fall behind in this financial infrastructure innovation race without swift action.
‘Urgent Need’ for STO Regulation 📜
Ryu Ji-hae, a director at Mirae Asset, echoed the sentiments, stating that bringing the token securities system under legal frameworks would pave the way for innovation in financial products. Legal recognition of distributed ledgers could establish blockchain as a core component of the financial industry.
Support for STO Industry Growth 🌱
During a panel discussion, participants agreed on the necessity of relevant laws to support the STO industry and enable companies to enter the virtual assets market. They suggested that the government should provide support to facilitate market entry.
Firms ‘Lining up’ to Launch Tokenized Securities Products 💼
Amid these regulatory discussions, it is noted that various South Korean companies, beyond just fintech firms, are eager to access the STO markets. Reports indicate that major commercial banks are preparing to venture into the sector.
Expanding Tokenization Beyond Securities 🌐
Kevin Murcko, CEO and Founder of CoinMetro, believes that the tokenization trend will extend beyond securities to historically illiquid markets such as art and gems. This broader tokenization drive could revolutionize investment options and enhance liquidity in traditionally illiquid markets.
Hot Take: Stay Ahead in the Tokenized Securities Race 🚀
As South Korea faces increasing pressure to regulate tokenized securities, the time to act is now. Embracing this digital transformation will not only enhance financial market stability but also position the country as a leader in blockchain innovation.
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