What to know:
- Tokenized stocks may face a securities tax if South Korea’s FSC agrees with the ministry.
- RWA.xyz data shows tokenized stock market value hit $1.47 billion on June 8, up 115%.
- FSC’s July guidance may decide how tokenized stocks are taxed in South Korea.
South Korea’s finance ministry views tokenized stocks as securities, not virtual assets, under current law. The position could bring these products into existing tax rules if the Financial Services Commission adopts the same interpretation after review.
Bloomingbit reported on Friday that a Ministry of Economy and Finance official outlined the view. The official said tokenized stocks may take the form of virtual assets. However, their substance is closer to securities.
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Tokenized Stocks Gain Scrutiny as Global Demand Rises
Taxation could proceed under existing capital market laws according to the ministry. This situation will not require any legislative change in case the Financial Services Commission agrees. The decision will classify tokenized equity instruments as beyond the virtual asset taxation regime.
Officials said this position depends on the rights attached to each instrument. Security-like rights should remain governed by securities law, regardless of how the product is issued. The ministry said financial regulators had shared this view several times.
The issue has gained attention with an increase in tokenized equity instruments globally. Investors have accessed publicly listed firms like Tesla and Nvidia using blockchains. These instruments allow investors access to longer trading times and faster settlement.
RWA.xyz data shows that the tokenized stock market had hit $1.47 billion on June 8. The number was 115% more than the amount at the beginning of the year. This development has been putting pressure on authorities to make clear definitions for the products.
Attention is now focused on the Financial Services Commission. The regulatory authority is likely to present new regulations concerning token securities and other related issues in July. It could affect the taxation of tokenized stocks in South Korea.
The move came in May when the regulator stated it would create a roadmap to tokenize conventional securities during a public-private task force meeting for token securities. That plan includes listed shares.
FSC Guidance Left Ordinary Tokenized Shares Unclear
In addition, South Korea had set a foundation legally for token securities in 2023. The Financial Services Commission announced that token securities that were issued as digital assets came under the Capital Markets Act.
However, the announcement largely pertained to fractional ownership in real estate, arts, and intellectual property.
The situation was not clear regarding tokenized versions of ordinary stocks. Market participants assumed that tokenized stocks would be considered virtual assets by the authorities. Taxation would be imposed only after implementing the virtual asset taxation system in 2026.
According to Bloomingbit, foreign platforms can also be included in the taxation system if the economic rights of tokenized assets meet the criteria of securities. The same test could apply even when trading occurs through foreign services.
According to the Binance Research report, tokenized stocks are the most rapidly growing segment of the real-world asset industry. In particular, tokenized stock market capitalization increased by 422% since the start of 2025 due to platforms providing access to blockchain equities and ETFs.
The ministry’s position adds weight to South Korea’s regulatory debate. The Financial Services Commission’s July guidance is now the key step. Its interpretation could decide whether tokenized stocks face immediate securities taxation.
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