Korea Exchange (KRX), South Korea's only stock exchange, has applied for a financial regulatory sandbox to provide financial services for the token securities trading market.
The market is expected to open in the first half of next year.
KRX's application to the Financial Services Commission (FSC) for an innovative financial service has sparked anticipation for the launch of a tokenized securities offering (STO) market. The FSC had previously approved a pilot scheme to open a market for investment contract securities and non-monetary trust income securities.
Currently, token securities are not legally allowed to be traded in the Over-the-Counter (OTC) market.
KRX plans to complete preparations to open the token security distribution market after receiving final approval from the FSC. The exchange aims to hold a briefing session early next year for businesses looking to issue token securities or trade on the OTC market.
An official from KRX said the following on the subject:
“Once approved, we will finalize and continue to develop market operation regulations. “We aim to open the market in the first half of next year.”
*This is not investment advice.