Korean regulator approves issuance and distribution of security tokens – Regulation – Crypto News Aktuell in English
South Korea’s Financial Services Commission (FSC) has reportedly said that Korean investors will soon be able to invest and trade security tokens or fractional assets easily. According to Lee Su-young of the FSC, investors in security tokens are expected to receive the same protections that are offered to investors in conventional securities.
Protecting Korean Security Token Investors
South Korea’s financial market regulator, the Financial Services Commission (FSC), has approved the issuance and distribution of security tokens, a report said. According to the report, Korean investors are expected to start trading security tokens once the regulator finishes revising the relevant laws.
According to a report in The Korea Times, regulators hope the changes will not only allow investors to make fractional investments, but also ensure security token holders receive the same protections afforded to conventional security investors.
“We have decided to have the new form of digitized securities issued here. This will allow investors to make fractional investments more easily via the security token. We will also protect security token investors on an equal footing with those investing in conventional securities,” Lee Su-young, an official with the regulator’s capital markets division, reportedly said.
Brokerage firms are preparing to trade security tokens
According to the report, the FSC’s decision to change the relevant sections of the relevant laws is also because Korea’s electronic securities and capital markets are expected to reflect “the global investment paradigm shift.”
Meanwhile, Kim Se-hee, an analyst at Eugene Investment & Securities, is quoted in the same report as highlighting the likely benefits of expanding the list of tradable assets. Some of the Korean brokerage firms reportedly updating their respective trading apps to allow security token trading are KB Securities, Shinhan Securities and Kiwoom Securities.
While the FSC has taken steps that now allow investors to buy and hold fractional securities, an unnamed source cited in the report urges investors to think before buying a security token. Despite these and other concerns, however, the unnamed source insisted it “boasts well that the FSC is showing signs of relaxing regulations in some trending investment areas.”
What do you think of this story? Let us know what you think in the comment section below.
photo credit: Shutterstock, Pixabay, Wiki Commons, Jarretera / Shutterstock.com
(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src=”
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));
Source: Crypto News Deutsch
