South Korea Sees No Clear Breach in Offshore Tokenized MMFs Tied to Domestic Assets
Korea opens path for offshore tokenized MMFs backed by domestic assets South Korea’s Financial Services Commission has concluded that issuing and selling tokenized securities overseas backed by domestic assets such as money market funds does not clearly violate the Electronic Securities Act, as long as issuance and sales stay outside Korea and do not affect the domestic market. The structure allows offshore funds to hold Korean MMFs and sell tokenized shares to overseas investors via private placements, giving Korean asset managers a new channel to tap on-chain capital while keeping Korean residents out of the market.