South Korea’s Financial Services Commission (FSC) has launched a joint government-private Token Securities Council to prepare for the implementation of new blockchain-based securities regulations. The initiative follows the passage of amendments to the Electronic Securities Act and Capital Markets Act in January 2026, which provide legal grounds for the issuance and management of token securities using distributed ledger technology. The council’s purpose is to design detailed digital finance standards and regulatory frameworks that reflect the technological characteristics of token securities. This move is part of the national agenda to build a robust digital asset ecosystem and modernize capital market infrastructure.
The Token Securities Council includes representatives from government agencies, financial institutions, fintech associations, academia, and legal experts. Key participants are the FSC chairman, Financial Supervisory Service, Korea Securities Depository, Korea Financial Security Institute, Korea Information and Communication Technology Association, Korea Financial Investment Association, Korea Fintech Industry Association, and private sector experts. The council is structured into four working groups: technology and infrastructure, issuance, distribution, and settlement. These groups will address issues such as blockchain requirements, smart contract utilization, investor protection, and the integration of stablecoins for on-chain payments.
The council held its kick-off meeting on March 4, 2026, and will operate as a permanent body with regular sessions. Its main tasks include refining sub-regulations, building infrastructure, and gathering market feedback to ensure practical and expert-driven policy design. The council will intensify discussions during the first half of 2026 and continue to convene as needed until the new laws are enforced on February 4, 2027. The council also plans to operate an open private advisory pool to enhance the expertise and realism of its recommendations.
Frequently asked questions include: What are token securities? Token securities are blockchain-based securities issued and managed via distributed ledgers, regulated under the amended Electronic Securities Act and Capital Markets Act. How will investor protection be ensured? The council will review and refine current investor protection mechanisms to align with the unique features of token securities, aiming for a tailored and robust system. What changes are expected in settlement systems? The council is preparing for future integration of stablecoins and on-chain payment systems to maximize settlement efficiency and global competitiveness.
Metaqsol opinion: South Korea’s Token Securities Council is a strategic move to align capital market regulation with blockchain technology. The council’s inclusion of diverse stakeholders and its focus on investor protection, technology standards, and settlement innovation are grounded in the article’s details. The planned integration of stablecoins and on-chain payments reflects global trends and positions South Korea for enhanced competitiveness. The council’s ongoing, open advisory process is likely to result in regulations that are both practical and responsive to industry developments.