South Korean Central Bank, Regulators Call for Tokenized Securities Regulations
Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...
South Korean industry chiefs and central bank executives have called on the government to “urgently” regulate tokenized securities as major players continue to wait for Security Token Offering (STO) approval.
Per the media outlet ET News, officials from the Central Bank, regulatory bodies, and the securities industry called for action at a Korea Securities Association (KSA) summit held on August 27.
The association claimed that “digital assets” represent the “future direction” of the financial market.
Speakers at the event said that Seoul should take measures, including the “legalization of tokenized securities.”
Yoon Seong-kwan, the Director of Digital Currency Policy at the Bank of Korea (BOK), said:
“As we transition to a digital economy, we must simultaneously carry out the tokenization of digital assets and payment methods.”
Yoon said that the central bank would likely play a key role in this, as it would “provide the final settlement asset” that would “support safe digital asset transactions.”
Lee Jun-seo, the Chairman of the KSA, claimed that as “digital assets” were set to play such a key role in financial markets, “more detailed legislation” was now “inevitable.”
He claimed that failing to roll out this legislation would “increase financial market instability” and spark “consumer protection issues.”
Lee reminded attendees that lawmakers have “an STO bill pending in the National Assembly.”
But he called for Seoul to “systematically reorganize” the financial sector’s “issuance and distribution infrastructure” to make space
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