Security Token Offering to Be Permitted
The Financial Services Commission announced on Jan. 19 that mandatory investment registration certificates applied to foreigners would be repealed and blockchain-based securities token offering (STO) would be permitted.
The mandatory certificates were introduced in 1992 so that foreigners register their personal information in the commission before investing in listed South Korean companies. There have been complaints as such registration is unique to the South Korean stock market.
The registration is likely to be replaced with legal entity identifiers and personal passport numbers. In addition, foreign investors’ duty to report investment details is likely to be repealed and such details are likely to be requested only when necessary for taxation or market monitoring.
When it comes to the tokens, issuance is expected to become possible directly or via a securities company and trading is planned to be allowed on over-the-counter platforms capable of protecting investors. The commission is planning to announce details on Jan. 25 as to the certificates and in early February as to the tokens.