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Several South Korean businesses are getting ready to provide STO-related services this year. And they are hoping that authorities will give them the go-ahead to begin this month.
According to Busan Ilbo, the Financial Services Commission, the country’s top financial regulator, is currently eagerly anticipating industry recommendations from a number of significant local corporations (FSC).
On January 19, the FSC is expected to issue a statement about STOs, however, the regulator’s intentions may not be fully known until later in the month.
The fact that several domestic securities companies are “busy constructing digital asset systems” that can handle and/or issue tokens suggests that many businesses are sure the FSC won’t place too many obstacles in their way.
The city of Busan, which wants to make STOs a significant component of the city-run Digital Assets Exchange initiative, will join them in their endeavors. In collaboration with a number of leading global cryptocurrency exchanges, including Binance, the project is being developed.
The “distribution and issue of security tokens” will be announced, according to prior statements from the FSC. All cryptoasset issuance is now prohibited in South Korea, while the current president has indicated he may change this regulation.
In the area of blockchain technology, Busan has been given unique status with no regulations. A tokenized real estate project is among the private-sector initiatives it has supported in its sandbox area that are connected to STOs.
The city is hoping that STOs and both local and foreign crypto ventures would be accepted by its Digital Assets Exchange.
The sole operating securities exchange in the country, The Korea Exchange, is likewise interested in the STO market. The Korea Exchange has announced its “goal to launch a digital stock exchange that would list and trade security tokens this year” and base this operation in Busan, according to its chairman Sohn Byung-doo.
The securities divisions of the two largest banks in Korea, Kookmin (KB) and Shinhan, are other participants. Both are apparently planning to launch their systems this year after finishing internal “testing on their platforms.”
A specialized securities and investment company called Kiwoom Securities is said to have “created a new digital asset research section” that is focused on securities token trading-related issues.
In-depth information on seven local securities firms’ plans to open cryptocurrency exchanges “within 2023” was provided in South Korean media reports last year.
