Korea Modernizes Assets, Japan Tightens Crypto Rules

The South Korean government is modernizing its state asset management system to include digital assets and intellectual property. The Ministry of Economy and Finance (MOEF) plans to tokenize government bonds on a blockchain by 2027, reducing transaction costs. This pilot program aims to shift the focus from a legacy real estate-focused framework to one that prioritizes value creation.

The MOEF first announced the pilot project to utilize tokenized deposits for government operational spending in April. The changes to South Korea's Capital Markets Act and Electronic Securities Act, which establish the nation's first framework for tokenized securities, are set to take full effect in February 2027.

Meanwhile, Japan's parliament has passed revisions to classify digital assets as financial assets under the country's Financial Instruments and Exchange Act (FIEA). This move introduces stricter trading rules, improved user protection, and increased penalties for businesses operating without registration.