The Democratic Party of Korea criticized the possibility that Lucent Block, the first corporations to issue token securities (STO), could be denied approval for an over-the-counter exchange, calling it a "damage to innovation." Financial Services Commission (FSC) Chairperson Lee Eog-weon said he agreed with the intent and would conduct a fair final review.

Park Beom-kye of the Democratic Party of Korea said at the National Policy Committee's full session on Feb. 5 about concerns that Lucent Block could be denied approval, "Putting up multiple hurdles to block new innovative corporations from entering service is like 'playing blind man's bluff,'" adding, "President Lee Jae-myung's innovative growth is most important, but this does not align with government policy. It goes against the spirit of innovation."

Lee Eog-weon, Financial Services Commission Chairperson (left), and Lee Chan-jin, Financial Supervisory Service Governor, attend a full session of the National Policy Committee at the National Assembly on the 5th and watch lawmakers' procedural remarks. /Courtesy of Yonhap News

The Financial Services Commission (FSC) convened the Securities and Futures Commission (SFC) on Jan. 7 and selected the Korea Exchange (KRX)–Koscom (KDX) consortium and the NEXTRADE (NXT)–Musicow (NXT) consortium as candidates for preliminary approval to operate an STO over-the-counter exchange. If this decision is finalized, Lucent Block, which has been conducting related STO business for more than seven years, will be eliminated.

In response, Chairperson Lee said, "I fully agree with the intent," adding, "The review has not been finalized and is underway. We will carefully examine the pointed-out issues and the intent." He continued, "We will conduct the review lawfully, fairly and strictly in accordance with the approval operation plan and review regulations."

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