South Korea to modify 76-year-old law to classify cryptocurrencies as national assets
South Korea is revising its 1950 National Property Act to classify cryptocurrencies as national assets as part of a broader blockchain integration strategy. The government plans to pilot tokenized government bonds by 2027 and is exploring the tokenization of state-owned real estate.
Why it matters
This move represents a significant shift in how sovereign states manage public finance and assets through distributed ledger technology.
The proposal contemplates revising the National Property Act, which dates back to 1950, and includes plans to create a broader legal framework for managing state-owned assets. The ministry reiterated plans to start a pilot program for tokenized government bonds in 2027, saying blockchain technology has the potential to reduce transaction costs and speed up transfers.
Officials are also studying the tokenization of state-owned real estate to allow retail investors to participate and share in investment returns, according to the plan.
The announcement builds on South Korea’s broader push to bring blockchain into public finance. Earlier this year, the Finance Ministry said it would begin testing tokenized deposits for government spending in the fourth quarter. The Bank of Korea has already started trials of its central bank digital currency (CBDC) with commercial banks.
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