Important Cryptocurrency Bills announced in Korea – expected to pass easily

The South Korean Congress is preparing to take an important step towards legalizing tokenized securities (security token, ST).

The bill, which is expected to be passed after the election, sparked major activity in the financial sector. The country’s leading financial institutions are rapidly establishing collaboration and ongoing technological infrastructure preparation to pioneer in this new market.

Tokenized securities are known as digital securities supported by blockchain technology. Thanks to the security and ease of the technology offers, low-liquid assets such as real estate, artwork, and living animals can be split into small stocks and provided to investors.

Tokenized securities currently remain in the grey area due to lack of regulation. However, Lee Jae Myung and Kim Moon Sou, the leading candidates running in the presidential election, have made clear in their campaign promise that iconic securities will be quickly legalized and the bill will almost certainly pass.

The fact that both tokenized securities are based on actual assets and have security status has led to serious consensus among political parties in this sector. This makes it easier for laws to be passed. According to industry representatives, this digital asset class is considered the “safeest innovation.”

Once the law is passed, an increase in tokenized investment products based on familiar assets such as real estate is expected in the short term. In the long term, market structure is expected to change fundamentally as traditional securities such as stocks and bonds become tokenized.

These blockchain-based digital securities promise to reduce transaction costs by reducing reliance on centralized intermediary agencies and enable automated transactions with artificial intelligence thanks to programmerism.

*This is not investment advice.