South Korea May Classify Tokenized Stocks as Securities, Opening the Door to Taxation in 2026South Korea is considering treating tokenized stocks as securities rather than digital assets, a move that could subject investors to existing securities tax rules as early as the second half of 2026.

🔸 The Ministry of Economy and Finance stated that although tokenized stocks are issued as blockchain-based tokens, they fundamentally remain securities because they represent the economic rights of underlying shares.
🔸 If the Financial Services Commission (FSC) adopts the same interpretation in its upcoming guidelines expected in July, taxation of tokenized stock investments could begin by late 2026.
🔸 The proposed framework may also apply to tokenized stocks traded on overseas platforms, provided the underlying asset is classified as a security under Korean law.
🔸 Tokenized stocks typically work by holding real shares with a licensed custodian and issuing blockchain-based tokens that represent ownership rights, enabling investors to trade them around the clock.
The decision could become a major precedent for how regulators worldwide classify and tax tokenized real-world assets (RWAs).
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