South Korea’s Financial Services Commission (FSC) has reportedly said that Korean investors will soon be able to easily invest and trade security tokens and fractionalized assets.FSC’s Lee Su- Young said that investors in security tokens are expected to get the same protection offered to investors in traditional securities.
Protecting South Korean Security Token Investors
South Korea’s financial market regulator, the Financial Services Commission (FSC), has reportedly authorized the issuance and distribution of security tokens. According to the report, Korean investors are expected to start trading security tokens once the regulator finishes amending relevant laws.
According to The Korea Times’report, regulators hope the changes will not only allow investors to invest in fractions, but also ensure that security token holders get the same protection afforded to traditional securities investors.
“We have decided to allow new forms of digitized securities to be issued here. This will allow investors to more easily make fractional investments through security tokens. It will also protect investors in security tokens on par with those who invest in traditional securities,” Lee Soo Young, an official in the regulator’s capital markets department, reportedly said.
Brokerage firms are preparing for the security token trade
Also, according to reports, the FSC decided to amend the relevant sections of the relevant laws because it wants Korea’s electronic securities and capital markets to reflect “a paradigm shift in global investment.”
On the other hand, Kim Se-hee, an analyst at Eugene Investment&, wrote in the same article, “Korea is undergoing a global investment paradigm shift. On the other hand, in the same report, Se Hee Kim, an analyst at Eugene Investment Securities, highlights the benefits that the expansion of the list of tradable assets would bring. Korean brokerages reportedly updating their respective trading apps to enable security token trading include KB Securities, Shinhan Securities, and Kiwoom Securities.
While the FSC is currently taking steps to allow investors to acquire and hold fractionalized securities, unnamed officials cited in the report tell investors to think before buying security tokens. However, despite this and other concerns, the unnamed source nevertheless claimed that “it is a good sign that the FSC is showing signs of easing regulations in some trendy investment areas.”
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