South Korea and tokenization

“Proposed rules would allow stocks, bonds, and investment funds to operate under the country’s tokenized securities framework when it comes into effect in 2027.

“The framework includes requirements covering capital, compliance personnel, technology systems and the management of distributed ledger records. Proposed rules for retail OTC markets would also impose annual purchase limits for individual investors.

“South Korea’s proposed framework would require distributed ledgers to operate with designated account managers and involvement from the Korea Securities Depository.
The important question is which record determines legal ownership when systems disagree, and who is responsible for…