“22nd National Assembly Reorganizes STO Bill…”We need to proceed with legislation quickly” (comprehensive)

When pursuing STO bill again, we should consider “ST” for fixed-term securities
The current regulations of digital financial industries
Using Distributed Ledger…Increase Transparency in Unlisted Shares
“If you look at the technical advantages of TALKEN Securities,”

This article has been translated into English through AI.

[E-Daily Marketin Reporter Kim Yeon-seo] “Financial authorities should consider not only unstructured securities but also the issuance of token securities (STO) of Jeong Hyeong Securities” (hereinafter referred to as Bycel Standard Vice President)

“The 22nd National Assembly should revise the STO bill to expedite legislation. The strict separation between the issuance and distribution of token securities should be eased,” said lawyer Han Seo-hee

“We should make an attempt to fully enjoy the technological development of blockchain” (Cheon Chang-min, professor at Seoul National University of Science and Technology)

The domestic STO industry made the remarks at a panel discussion on the “Status, Innovation and Challenges of Blockchain-Based Token Securities Market: Korea-Japan Cooperation and Opportunities to Enter Asia” held at the Yeouido Financial Investment Association in Seoul on the 8th, calling for institutionalization of STO in Korea.

Token Securities Industry “Not only unstructured securities, but also structured securities should be tokenized.”

During the panel discussion on this day, there was an opinion that if the STO bill is pushed forward again, the authorities need to consider the tokenization of existing standardized securities. “In Japan, not only real estate token securities but also equity securities and debt securities are issued as tokens,” said Weissel Standard Vice President Lee Ha-nul. “SBI Group also used token securities as a paid-in capital increase of its subsidiary.”

“On the other hand, Korea only deals with unstructured securities and tends to exclude making existing structured securities into token securities. The same goes for the guidelines of financial authorities,” he said. “Token Securities should eventually have ‘liquidation of assets’ and ‘funding’ on both wings, but Korea is only going one way.” He added, “I hope the 22nd National Assembly will deal with this when discussing legislation.”

Music Cow argued that the current regulations and legal systems based on the analog economy are currently acting as the biggest obstacle to fostering the digital asset and digital finance industries. Shin Woo-young, a lawyer for Music Cow, said, “I think the current regulatory situation is so limited that I wonder if we can develop in this STO industry. I hope that we will be able to make active transactions by releasing a little more from multilateral counterpart trading to revitalize the off-site trading business.”

Some suggested that token securities could increase the transparency of unlisted stock trading. “The high utilization of shareholders’ lists based on distributed ledger technology can increase transparency in unlisted stock trading,” lawyer Han Seo-hee said. “If the securities subject to issuance can be expanded, it will be a highly useful token securities system.”

“There is a need for the 22nd National Assembly to revise the STO bill and proceed with legislation quickly,” he said. “The principle of strict separation of token securities issuance and distribution is currently proposed, but the principle should be relaxed a little in consideration of inefficiency in terms of technical problems.”

It was also pointed out that the current financial authorities are putting strict standards on the token securities market. “The current supervisory body is emphasizing the principle of supplementality,” said Cheon Chang-min, a professor at Seoul National University of Science and Technology. “It seems to be a deviation from the introduction of a regulatory sandbox system.”

Professor Chun stressed that we need to see the technological advantages of token securities. “There is only one case of token securities regulation sandbox recognition this year,” he said. “The authorities say they will not recognize token securities on exchange. We can understand it in terms of investor protection, but we need to look at accounts receivable that can protect investors positively. We need to make an attempt to fully enjoy technological advances.”

“Even if the law is made, the market situation remains the same if the supervisory body’s position and attitude do not change,” he said. “The revision of the law is important, but the supervisory body’s perspective needs to be changed.”

Lee Hyo-seop, a researcher at Capital Markets, is in charge of research on digital finance within the Financial Services Commission’s Future Response Finance Task Force. The researcher cited △ cross border △ digital green bonds △ unlisted stocks △ voluntary emission rights △ intellectual property rights △ K culture as token securities that the authorities view positively.

“The authorities do not have much confidence in the function of blockchain technology yet,” he said. “Token securities are similarly concerned that there may be problems related to investor protection.”

“And since there are negative opinions on whether blockchain should be used for formal securities, discussions have been made on investment contract securities with innovation,” he said. “There is also concern that there may be a possibility of unfair trade in that it is difficult to evaluate the value.” Finally, he advised, “Token Securities operators should consider these authorities’ thoughts and do business.”