The South Korean Financial Services Commission (FSC) has reportedly said that Korean investors will soon be able to easily invest and trade security tokens or fractionalized assets. According to the FSC’s Lee Su-young, security token investors are expected to get the same protection as conventional security investors.
Korean Security Token Investor Protection
South Korea’s financial markets regulator, the Financial Services Commission (FSC), has approved the issuance and distribution of security tokens, according to a report. According to the report, Korean investors are expected to start trading security tokens once the regulator has completed the review of the relevant laws.
according to a report In The Korea Times, regulators hope the changes will not only allow investors to make fractional investments, but also ensure security token holders get the same protection afforded to conventional security investors.
“We have decided to allow the new form of digitized securities to be issued here. This will allow investors to more easily make fractional investments through the security token. We will also protect security token investors on a par with those investing in conventional securities,” said Lee Su-young, an official at the regulator’s capital markets division.
Brokerage Firms Preparing for Security Token Transactions
Furthermore, according to the report, the FSC’s decision to amend the relevant sections of the relevant laws is because it wants Korea’s electronic securities and capital markets to reflect “the global investment paradigm shift.”
Meanwhile, Kim Se-hee, an analyst at Eugene Investment & Securities, is quoted in the same report as highlighting the potential benefits of expanding the list of tradable assets. Some of the Korean brokerage firms that are reportedly upgrading their respective trading apps to allow security token trading include KB Securities, Shinhan Securities, and Kiwoom Securities.
While the FSC has taken steps that now make it possible for investors to purchase and hold fractional securities, an anonymous source cited in the report tells investors to think before buying a security token. However, despite this and other concerns, the unnamed source insisted that it is “a good sign that the FSC is showing signs of easing regulations in some hot investment areas.”
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