The South Korean National Assembly has passed two legislative amendments to regulate security tokens.

PANews January 15 News, according to Digital Asset, the Korean National Assembly has voted to pass amendments to the Capital Markets Act and the Electronic Securities Act, marking the country’s official establishment of a framework for the issuance and circulation of security tokens (STO) after approximately three years of the financial regulatory authorities issuing related guidelines. The core content of the amendments includes introducing the concept of distributed ledger technology, allowing issuers that meet certain conditions to directly issue and manage tokenized securities via electronic registration, and the establishment of a new “Issuance Account Management Agency.” Additionally, non-typical securities such as investment contract securities will also fall under the regulation of the Capital Markets Act, and their circulation in over-the-counter markets will be facilitated through the newly established over-the-counter trading brokerage business. The amendments to the Capital Markets Act will come into effect from the date of promulgation. However, provisions related to investment solicitation guidelines will take effect six months after promulgation, and provisions related to over-the-counter trading will take effect one year after promulgation.