The Financial Services Commission (FSC) approved the issuance of security tokens (STO) and plans to announce a regulatory system for the issuance and distribution of security tokens within this month. Under the current law, only physical securities and electronic securities are recognized for their right to presume and power to oppose a third party, but the authorities partially amended the Act on Electronic Registration of Stocks to allow the distributed ledger as a method of recording electronic securities in the account book. The FSC plans to introduce an issuer account management institution to enable STO without going through a securities company if certain conditions are met. Security tokens cannot be traded on cryptocurrency exchanges other than financial investment companies but can be traded after going through the delisting process from the virtual asset exchanges and the listing process in the digital stock market.

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