The continued integration of digital assets into the financial system is happening across the Asia-Pacific region.
South Korea is preparing a phased approach for tokenized securities, while Taiwan is working on new stablecoin rules. In Australia, unlicensed crypto firms are being required to apply for licenses as the country moves toward a more regulated digital asset market.
The three countries are showing different approaches, but they point to a wider move toward stronger regulation and greater integration of digital assets into the financial system.
South Korea’s Phased Approach to Tokenized Securities
South Korea’s Financial Services Commission (FSC) announced a three-stage roadmap for tokenized securities ahead of the new framework taking effect on February 4, 2027.
The plan aims to build the infrastructure needed to expand tokenized securities beyond fractional investment products and eventually include existing financial products such as stocks, bonds, and funds.
The FSC and Financial Supervisory Service (FSS) announced the policy direction during a meeting on September 4 focused on developing the rules and infrastructure for tokenized securities. Amendments to South Korea’s Electronic Securities Act will provide a legal basis for using distributed ledger technology (DLT) for securities registration.
During the first phase, the focus will be on private money market funds and private bonds for institutional investors. Unlisted stocks may also be tokenized through trusts.
Regulators will use existing securities firms and over-the-counter trading platforms to support these transactions. Retail investors will also have an annual net purchase limit of 100 million won per exchange.
For the second phase, the infrastructure will expand to publicly offered securities. The third phase will allow stablecoins and other digital assets to be used as payment methods for on-chain settlement.
Taiwan Prepares New Stablecoin Rules
Taiwan, on the other hand, is also preparing new rules for digital assets, with stablecoin regulations potentially taking effect as early as the first quarter of 2027.
Taiwan’s FSC said it is working on nine subsidiary regulations needed to implement the country’s recently passed digital asset legislation. One of these will cover stablecoins.
Taiwan’s Virtual Asset Service Act establishes a licensing framework for virtual asset service providers and includes requirements for internal controls, audits, cybersecurity, customer asset segregation, outsourcing, and financial reporting.
For stablecoin issuers, they will need to seek approval from the Central Bank and FSC. They will also be required to maintain full reserve backing, keep reserve assets segregated in trust, undergo regular audits, and provide periodic disclosures.
Australia Warns Unlicensed Crypto Firms
Australia, on the other hand, takes a different approach by focusing on licensing requirements. Digital asset firms operating under temporary regulatory relief have until September 30 to apply for an Australian Financial Services license or risk penalties.
ASIC, the Australian Securities and Investments Commission, stated that firms that do not meet the conditions of its temporary relief could breach financial services laws after October 1. Penalties could include civil and criminal consequences, including potential fines of up to 10% of annual turnover.
Australia has also set a new digital asset framework that will take effect on April 9, 2027. It will bring digital asset platforms, custodians, and certain token platforms under the existing Australian Financial Services License framework.
The new rules will cover areas such as governance, risk controls, custody and asset protection, recordkeeping, disclosure, consumer protection, and market conduct. ASIC stated that it has received more than 45 license applications from businesses seeking relevant authorization since its guidance was updated in October 2025.
Overall, South Korea, Taiwan, and Australia are taking different paths, but all three are moving digital assets closer to a regulated financial system. Their approaches focus on creating rules that allow digital assets to develop while protecting investors, maintaining market integrity, and supporting financial stability.
