This year, several companies based in South Korea are getting ready to introduce services connected to security token offerings (STOs). In addition, they are keeping their fingers crossed that the relevant authorities will permit them to begin operations this month.
According to the Busan Ilbo (1), a number of the largest domestic corporations are eagerly expecting industry recommendations from the Financial Services Commission (FSC), the most senior financial regulator in the nation.
On January 19, the FSC is expected to make a statement about STOs; however, it is possible that complete particulars of the regulator's plan may not become evident until later in the month.
Multiple domestic securities firms are "busy preparing digital asset platforms" that can handle and issue tokens. This indicates that many businesses have faith that the Financial Services Commission would not place too many obstacles.
Companies will be supported in the endeavors by the town of Busan, which intends to make STOs a fundamental component of the initiative that is being operated by the city and is known as the Digital Assets Exchange.
Binance is one of the leading crypto currency exchanges in the world, and it is working along with several other leading exchanges to create this initiative.
The Financial Stability Commission (FSC) has announced in the past that it will make pronouncements regarding the "distribution and issue of security tokens." At the moment, any crypto currency is illegal in South Korea; however, the country's current president has hinted that he intends to change this restriction.
These Companies Have Hopes of Launching Security Token Platforms
In the field of blockchain technology, Busan has been given a unique status that exempts it from some regulations. And among the private-sector ventures it has fostered in its sandbox environment, many of them are connected to STOs. One of these projects is a tokenized property investment venture.
The municipality has high expectations that its Digital Assets Exchange will be granted permission to handle security token offerings (STOs) in addition to domestic and international crypto currency initiatives.
The sole operator of a securities exchange in the country, the Korea Exchange, also has its sights set on the STO market. Recently, the chairman of the Korea Exchange, Sohn Byung-doo, commented publicly on the organization's "plan to launch a virtual stock exchange which will list & trade tokens this year" – and that this enterprise will be headquartered in Busan.
The securities divisions of financial giants Kookmin (KB) & Shinhan are also active participants in this market. It has been stated that both have finished the "testing on their platforms" that was conducted internally and planned to release them this year.
According to recent reports, Kiwoom Securities, a company focusing only on the securities and investment markets, has "established a new digital asset research unit" focusing on issues associated with trading securities tokens.
In December 2018, local media in South Korea reported extensive information on the plans of seven local securities firms to create crypto currency exchanges "within 2023."