A Very Important Bill on Cryptocurrencies Has Been Announced in South Korea! It is certain that it will pass

The National Assembly of South Korea is preparing to take an important step towards legalizing tokenized securities (Security Token, ST).

The bill expected to pass after the elections has led to significant activity in the financial sector. The leading financial institutions in the country are rapidly forming partnerships and continuing their technical infrastructure preparations to become pioneers in this new market.

Tokenized securities are known as digital securities supported by blockchain technology. Thanks to the security and ease of transactions offered by this technology, it becomes possible to present low liquidity assets, such as real estate, works of art, and even live animals, to investors by dividing them into smaller shares.

Currently, tokenized securities reside in a gray area due to a lack of regulatory framework. However, both main candidates competing in the presidential election, Lee Jae-myung and Kim Moon-soo, have clearly stated in their campaign promises that tokenized securities will be quickly established on a legal basis. This makes the passage of the bill almost certain.

The fact that Tokenize securities are based on real assets and also carry security status has led to a serious consensus among political parties in this area. This also facilitates the passage of the law. According to sector representatives, this class of digital assets is seen as the "safest innovation."

With the passage of the law, an increase is expected in tokenized investment products based on familiar assets such as real estate in the short term. In the long term, it is anticipated that the market structure will fundamentally change with the tokenization of traditional securities, such as stocks and bonds.

These blockchain-based digital securities promise to reduce transaction costs by decreasing dependence on centralized intermediaries while enabling automated transactions supported by artificial intelligence thanks to their programmability.

*This is not investment advice.

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