South Korea Set to Shake Up Crypto: New Tokenized Securities Rules Coming July!

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South Korea To Unveil Tokenized Securities Rules In July As Crypto Regulation Advances

South Korea is preparing to publish specific guidelines for how tokenized securities will be created, managed, and shared, as it moves forward with plans to regulate the cryptocurrency market by 2027.

FSC Eyes July Tokenized Securities Framework

South Korea’s financial regulator, the Financial Services Commission (FSC), announced on Friday that it will release its plans for tokenized securities in July. This framework will be published following the second meeting of a government-private working group, the “Token Securities Council,” which began meeting in March.

South Korea’s National Assembly approved a new law earlier this year – the Token Securities Institutionalization Act – which will update existing regulations for electronic and capital markets. The changes will go into effect on February 4, 2027.

These updates will let eligible companies create and offer digital versions of traditional securities using blockchain technology. These digital securities can then be bought and sold like regular investments through brokers and other authorized financial firms.

According to Kwon Dae-young, Vice Chairman of the Financial Services Commission (FSC), building a successful tokenized securities system requires both encouraging new ideas and maintaining public confidence. To achieve this, the FSC is currently considering ways to simplify regulations and provide clear guidance under the Tokenized Securities Act.

The regulator also plans to create a step-by-step plan for turning traditional investments like stocks and bonds into digital tokens, and for handling settlements directly on the blockchain, using successful methods from other countries.

According to Kwon, the FSC will focus on maintaining fair markets and protecting investors, but will avoid overly strict or biased regulations. Specifically, they intend to permit the creation of fractional investment securities by combining similar assets into groups, allowing for more accessible investment opportunities.

The government aims to create a market that trades efficiently, promotes fair competition, and safeguards users. According to the Vice Chairman of the Financial Services Commission, they will implement trading limits on over-the-counter exchanges in a way that boosts early market activity and protects investors, without hindering innovation.

South Korea Prepares For Crypto Rules Implementation

New regulations for tokenized securities are being introduced as South Korea continues its efforts to oversee digital assets and the cryptocurrency market. The country has been building a system to monitor the crypto industry and safeguard investors for several years.

In addition to the new Token Securities law, the government plans to introduce changes to the Income Tax Act in 2027. Tax officials are working quickly to establish a system for collecting and monitoring taxes, resolving long-standing issues and delays.

Last month, South Korea’s tax agency, the National Tax Service (NTS), said it was finally getting ready to enforce new rules for cryptocurrencies, starting in January, according to Bitcoinist.

Starting January 1, 2027, profits from cryptocurrency will be taxed at 20%, potentially reaching 22% when local taxes are included. The government plans to collect data from crypto exchanges to ensure accurate taxation, provide clear guidelines for taxpayers dealing with crypto income, and define how capital gains will be calculated.

As a researcher following the debate around crypto taxation, I’ve been tracking the attempts to get it abolished or at least delayed. While there’s been some pushback – including a bill proposed by the People Power Party and a petition garnering over 30,000 signatures – it’s looking increasingly unlikely to succeed. Unfortunately, petitions rarely translate into actual law changes, and government officials seem committed to implementing the tax as planned in 2027.

South Korean politicians have consistently called on the government to create rules for stablecoins. However, progress has been stalled since late 2025 because the country’s central bank (the Bank of Korea) and the financial regulator (the FSC) haven’t been able to reach an agreement.

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2026-05-16 10:56