"Democratic Party's Kang Jun-hyun Proposes Token Securities (STO) Law... Will STO Investment Limits Be Eased?"

Kang Jun-hyun, a member of the Democratic Party and secretary of the National Assembly's Political Affairs Committee, has proposed a bill for the issuance of token securities (STO).

According to industry sources on the 22nd, Kang Jun-hyun, a member of the Democratic Party and secretary of the National Assembly's Political Affairs Committee, proposed amendments to the Electronic Securities Act (Partial Amendment to the Act on Electronic Registration of Stocks and Bonds, etc.) and the Capital Markets Act (Partial Amendment to the Act on Electronic Registration of Stocks and Bonds, etc. and the Act on Capital Markets and Financial Investment Services) related to STO on the 21st.

The bill proposed by Representative Kang aims to allow the issuance of token securities using distributed ledger technology and to establish a distribution market to enable the trading of token securities. The amendment to the Electronic Securities Act focuses on providing a legal basis for using distributed ledger technology in the electronic registration and management of stocks. In particular, it is reported that the amendment to the Capital Markets Act includes a clause prohibiting discrimination in investment limits depending on the investment intermediary.

Previously, in the 21st National Assembly, STO bills proposed by Representatives Kim Jae-seop and Min Byung-deok were introduced but were not put to a vote and were automatically discarded with the end of the National Assembly's term. The legislation of STO has been pursued since 2023 but has repeatedly been pushed back in priority. Last year, the legislation of STO was delayed again due to the declaration of martial law on December 3.

The industry expects that this proposal will once again accelerate the activation of the token securities market.

Meanwhile, Representative Kang Jun-hyun is scheduled to hold a National Assembly forum on the 24th at the Assembly Hall on the theme of 'Resolving Conflicts of Interest in Digital Asset Exchanges' for the enactment of the Basic Law on Digital Assets.