Offshore Tokenized Securities Approved Amid Accelerated Institutional Frameworks

South Korea’s Financial Services Commission confirmed that offshore tokenized security offerings backed by domestic Money Market Funds do not violate current laws, resolving key regulatory uncertainties for institutional issuers. Concurrently, authorities are preparing the government draft of the Digital Asset Basic Act by year-end and auditing corporate exchange accounts to establish a structured framework for institutional market entry.

Offshore KRW MMF Tokenization Declared Compliant

The Financial Services Commission issued a formal legal interpretation stating that issuing and distributing offshore tokenized securities backed by domestic Money Market Funds does not violate the Electronic Securities Act. Arriving ahead of the amended Electronic Securities Act taking effect next February, this ruling resolves legal ambiguities for domestic financial institutions and opens the door for tokenizing other underlying KRW assets such as bonds and real estate overseas.

Resumption of Digital Asset Basic Act and Corporate Account Audits

Financial authorities announced plans to finalize a government draft of the Digital Asset Basic Act within the year. In parallel, the Financial Intelligence Unit began auditing existing corporate accounts at digital asset exchanges, laying the groundwork for broader corporate and institutional market participation.

▶ Sources: Yonhap Infomax | Edaily | Newsis | Yonhap News

US Government Digital Asset Custody Model and Key Takeaways

Just as the US government relies on specialized custodians for seized digital assets, demand among Korean public institutions, financial firms, and corporations for institutional custody is rapidly expanding. BDACS anchors this transition as Korea’s leading regulated custodian, providing bank-grade security and compliance for institutional capital.

▶ Sources: BDACS Newsroom Blog