According to Newsis on July 13, the People’s Power Party and the South Korean Financial Services Commission plan to submit amendments to the Electronic Securities Law and the Capital Market Law to the National Assembly within this month. The amendments aim to institutionalize symbolic values. Representative Yoon Chang-hyun of the People’s Power Party, a member of the Political Affairs Committee, will lead the proposal.

Token securities are securities issued in the form of a token using blockchain technology. They allow the trading of various rights that were difficult to issue as traditional electronic securities. In theory, all assets, including commercial buildings, artwork, luxury items, and intellectual property (IP) rights, can be tokenized. That is why the securities industry anticipates innovative new businesses using ST.

In preparation for the legislation, the People’s Power Party’s Policy Committee, Political Affairs Committee, and Special Digital Assets Committee will hold a public hearing at 10 am today. The hearing will discuss the legislation that has been drafted so far, under the title “Venture Start-up Energy UP STO (Security Token Offering)”.

The upcoming legislation is expected to reflect the ‘Token Securities Issuance and Distribution Regulation System Improvement Plan’ announced by the Financial Services Commission in February. The improvement plan includes amending the Capital Markets Law and the Electronic Securities Law to allow the issuance of token securities and establishing new account management institutions and over-the-counter trading brokerage businesses related to issuance and distribution.

Additionally, on July 11, the Financial Services Commission (FSC) unveiled new legislation that requires all companies that issue or manage cryptocurrencies, such as Bitcoin and Ethereum, to disclose their holdings. The goal of this bill is to increase transparency in the accounting and disclosure of crypto assets, adhering to supervisory guidelines that require accounting of every transaction involving cryptocurrencies.

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