South Korean token securities bill passes National Assembly

Amendments to South Korea's Capital Markets Act and Electronic Securities Act, which provide the legal framework for token securities (STOs), have passed a plenary session of the National Assembly, Digital Asset reported. The passage comes approximately three years after financial authorities first released guidelines on the matter. The legislation officially defines the digitization of securities under the Capital Markets Act using distributed ledger technology. It also integrates token securities into the electronic registration system and establishes a new category of issuer account management institutions. This will allow qualified issuers to directly issue, record, and manage their token securities on a distributed ledger. The bill now awaits Cabinet approval and promulgation before becoming law.