South Korea is developing guidelines for security tokens, which will be released by the end of 2022. Simultaneously, the pilot market, with a regulatory sandbox, will be created prior to official commercialization.On September 6, the Financial Services Commission (FSC), South Korea’s chief financial regulator, issued the report including the findings of a joint policy seminar it held with the Financial Supervisory Service, Korea Securities Depository, Korea Exchange, and Capital Market Research Institute. The stakeholders gathered to develop a more comprehensive national strategy for the issuance and distribution of<a href="https://www.coingabbar.com/en/gabbar-gbr-token" rel="noopener noreferrer nofollow"> security tokens.</a>As the country’s present capital market and electronic securities system lack legal definitions of non-standardized securities issued via blockchain. The FSC deemed it necessary to draught separate guidelines to assist the market’s and industry’s sound growth.In the fourth quarter of 2022, the FSC will create and issue guidelines for security tokens. Following that, the Security Token Discipline System will be established by amendments to existing legislation, such as the Electronic Securities Act and the Capital Market Act.The Korea Exchange will operate the digital securities market, while the Korea Securities Depository will evaluate tokens before registering and listing them. In the early phases, the regulator will permit limited over-the-counter trading.The announcement is the latest in a series of regulatory steps announced by the country’s newly elected administration with the goal of promoting the<a href="https://www.coingabbar.com/en/cryptocurrency" rel="noopener noreferrer nofollow"> cryptocurrency</a> industry.On September 1, local lawmakers proposed enacting the Metaverse Industry Promotion Act, which would encourage the growth of the Metaverse in South Korea. In May, the press was given access to an ambitious proposal to establish a comprehensive general<a href="https://www.coingabbar.com/en/crypto-blogs-english/why-cryptocurrency-is-hard-to-regulate" rel="noopener noreferrer nofollow"> crypto framework</a> by 2024.Read also:<a href="https://www.coingabbar.com/en/crypto-currency-news-english/solana-based-transactions-approach-m-despite-challenging" rel="noopener noreferrer nofollow"> Solana-based Transactions Approach 100M Despite Challenging 2022</a>

South Korean Regulators to Craft Guidelines For Security Tokens in 2022

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