South Korea Proposes $2.8 Million Capital Rule for Tokenized Securities Firms
The rules would also cap retail investors’ net purchases at $70,000 a year on each licensed over-the-counter platform.
South Korea’s proposed tokenized-securities rules would require some firms to hold at least $2.8 million in capital and limit retail purchases on each licensed platform, setting conditions for a market that could include tokenized stocks, bonds and funds.
The Financial Services Commission (FSC), South Korea’s financial regulator, announced the rules on Oct. 2. They would recognize distributed ledger technology as infrastructure for issuing and trading securities.
The 4 billion won capital threshold would apply to firms that issue and manage tokenized securities and choose to manage customer accounts directly. Those firms would also need dedicated compliance and technology teams. The specified capital requirement would not apply to companies that outsource account management.
The framework would create a new over-the-counter license for trading tokenized debt securities. Retail investors could make up to 100 million won, or about $70,000, in net purchases per year on each licensed platform. Purchases above that cap would have to go through institutional channels.
The rules cover stocks, bonds, funds and certain investment securities intended for specific investor groups. Public comment began Oct. 3 and runs through Nov. 11.
The FSC is targeting Feb. 4, 2027, for the rules to take effect alongside an amendment to the law on distributed ledger infrastructure.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.