The South Korean National Assembly is accelerating the review process of the Security Token Offering bill

According to Cryptonews, the South Korean National Assembly is accelerating the review process of the "Securities Token Offering Act." Two STO-related bills submitted by lawmakers Min Byeong-deok and Kim Jae-seop have entered the discussion stage in the State Affairs Committee. The newly elected Democratic President Lee Jae-myung has explicitly supported the legalization of STOs, which may break the legislative deadlock since December last year.

The report points out that major South Korean securities companies and tech enterprises have been preparing a large number of STO issuance plans for years, involving fields such as real estate, commodities, and intellectual property. Although former President Yoon Suk-yeol had repeatedly promised to promote the legalization of STOs without success, the current ruling and opposition parties have reached a rare consensus. The financial market expects the new government to complete the legislative process as soon as possible. If the bill is passed, it will abolish the blockchain token issuance ban implemented in the late 2010s and establish a compliance framework for institutions to issue asset-backed tokens.