South Korea to Classify Cryptocurrencies as National Assets: Overhauling a 76-Year-Old Law

South Korea is set to officially recognize cryptocurrencies as state-owned assets, delivering a sweeping overhaul to Asia’s oldest financial statute.

From 1950 to 2027: A Turning Point in the National Property Act

■The 1950‑era National Property Act will be expanded to include cryptocurrencies and intellectual property by 2027.

■The government plans to launch a pilot for tokenized government bonds in 2027.

■The move leverages blockchain’s ability to cut transaction costs by up to 30% and accelerate settlement times.

Government Tokenization Playbook: Bonds and Real Estate

■Tokenized government bonds will be linked to the Bank of Korea’s CBDC infrastructure during the 2027 pilot.

■Studies are under way to tokenize state‑owned real estate, aiming to boost retail investor participation by 20%.

■Ongoing research focuses on interoperability between the central bank’s blockchain network and other distributed ledger platforms.

Market Pulse: CEX Volumes Surge

■Spot trading volume jumped 15.3%, reaching $1.11 trillion.

■RWA perpetual contracts hit a record $311 billion, signalling strong appetite for tokenized real‑world assets.

■The surge reflects global investors’ positive response to South Korea’s regulatory foresight.

Regulatory Framework and CBDC Integration

■Amendments to the Capital Markets Act and the Electronic Act take effect on Feb 4 2027, granting legal recognition to blockchain ledgers as security registries.

■The Bank of Korea aims to integrate its CBDC trials with tokenized government bonds, enhancing liquidity and transparency.

■Authorities pledge close monitoring of tokenization’s impact on financial stability and market openness.

Cem Talu – Head of Digital Assets Strategy: This regulatory push positions South Korea not only as a regional tokenization pioneer but also as a global benchmark for blockchain‑based public finance. The 2027 pilot, by tokenizing sovereign bonds, will broaden liquidity and democratize access for retail investors. Markets are reading this as a “digital asset superpower” signal; early‑stage investors should seek arbitrage opportunities arising from the CBDC‑linked infrastructure.