South Korea Financial Services Commission Proposes Amendment to Capital Markets Act to Include STOs

South Korean President-elect Yoon Suk-yeol is working with financial authorities to regulate the Security Token Offering (STO) and Initial Exchange Offering (IEO).

The Financial Services Commission has proposed amending the Capital Markets Act to include STOs, as well as considering whether such financial products will be offered on traditional exchanges or cryptocurrency service providers. The President's Committee is also looking to grant more licenses to crypto platforms for exchanging cash to cryptocurrencies.

There are only four cash-to-crypto exchanges in South Korea – Upbit, Bithumb, Coinone and Korbit – which account for over 95% of the local crypto market. The president-elect promised crypto-friendly policies in his campaign, including lifting the 2017 ICO ban by approving an IEO.

Image: Finance Magnates