South Korea’s FSC Will Study Crypto Exchanges’ Role in STO Market

South Korea’s Financial Services Commission (FSC) will study whether cryptocurrency exchanges can participate in the country’s security token offering (STO) market, examining market conditions, investor protection and rules for operating other businesses alongside STO services.

The review will consider how licensing systems could be integrated and whether exchanges should be permitted to offer STO services while conducting other business activities. The study also covers market conditions and the investor protections relevant to exchange participation.

The FSC chairman supported using existing exchanges’ technology and trading infrastructure to develop the STO market. The chairman also emphasized integrating that infrastructure into the token securities market.

The announcement starts a review of possible exchange participation. It does not authorize exchanges to enter the market or begin providing STO services.