Industry Calls for Token Security Regulations to Be Improved

The Financial Services Commission is advancing the institutionalization of token securities in three phases, ultimately previewing on-chain payments linked to stablecoins and cross-ledger interoperability. However, the blockchain industry has reported that current regulatory design may actually constrain this expansion, prompting calls for revisions to be submitted to Parliament, according to Yonhap News Agency.

The industry argues that regulations prohibiting inter-ledger transfers, restrictions on public blockchain usage, and entry requirements for non-financial companies should be reviewed. They also advocate introducing a sunset clause to reassess initial regulations after 1-2 years and establishing an interoperability sandbox. The Korea Blockchain Industry Promotion Association (KBIPA) emphasized in its submission that the current structure limiting token securities to one distributed ledger may hinder future adoption of cross-ledger interoperability technology, as it prevents duplicate issuance of securities across ledgers.