South Korea’s Financial Services Commission (FSC) will open an institutional market to enable the trading of blockchain-based security tokens.

Security tokens are rights in a token format using blockchain technologies.

The FSC plans to revise the Electronic Securities Law to recognize security tokens as physical and electronic securities to legally guarantee investors.

It will also institutionalize related platforms to ensure the safe trading of security tokens in the over-the-counter market.

Additionally, security tokens could be issued without going through securities firms as long as certain requirements are met.