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SEC approves Nasdaq’s move to allow tokenized securities trading

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SEC approves Nasdaq's move to allow tokenized securities trading

The U.S. Securities and Exchange Commission (SEC) approved on Wednesday Nasdaq’s proposal to allow certain securities to trade in tokenized form, a significant milestone to integrate blockchain tech into U.S. equity markets.

Nasdaq’s tokenization plan ties into a pilot run by the Depository Trust Company (DTC), which will handle clearing and settlement of tokenized trades. Nasdaq filed for regulatory permission in September,

Under the framework, eligible Nasdaq participants can choose to have trades settled as blockchain-based tokens rather than through standard book-entry systems.

Tokenized shares will trade alongside traditional shares on the same order book and at the same price. They will carry identical rights, use the same ticker and CUSIP (identification number) and follow existing market rules.

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The SEC said the structure meets investor protection standards, noting that surveillance, data reporting and settlement timelines remain intact.

The move comes as tokenization of traditional assets like stocks, bonds and funds have become a fast-growing sector in the digital asset space. The process allows near-instant, around-the-clock trading with tokens tied to real-world assets.

The trend has captivated major U.S. exchanges. Nasdaq said last week that it is developing a framework that would allow publicly listed companies to issue blockchain-based versions of their shares. It has teamed up with crypto exchange Kraken to distribute tokenized stocks globally. Meanwhile, Intercontinental Exchange (ICE), the owner of the NYSE, invested in crypto exchange OKX with plans to launch new tokenized stocks and crypto futures.

Read more: Here is why Nasdaq and owner of NYSE are putting the $126 trillion equity market on blockchain

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Crypto World

South Korea Tightens Crypto Withdrawal Delay Exemptions

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South Korea Tightens Crypto Withdrawal Delay Exemptions

South Korea’s financial regulator said it will tighten the exception rules under crypto exchanges’ withdrawal-delay system after finding that scam-linked accounts granted exemptions accounted for most voice-phishing-related losses. 

The Financial Services Commission (FSC) said Wednesday that the strengthened framework, developed with the Financial Supervisory Service (FSS) and the Digital Asset eXchange Alliance (DAXA), will impose unified standards on when users can bypass withdrawal delays. 

The regulator said exchanges had been applying their own exception criteria with no clear minimum standard, creating loopholes that let bad actors quickly move funds if they meet easy requirements such as account age or trading history. 

From June to September 2025, accounts granted withdrawal-delay exemptions made up 59% of fraudulent accounts and 75.5% of related losses at crypto exchanges, the FSC said.

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The move follows a wider South Korean push to tighten crypto exchange controls after voice-phishing abuse and operational-control failures, including fresh reforms announced this week after Bithumb’s Bitcoin (BTC) payout error.

Transfer route and protection device for voice phishing damage through virtual assets, translated to English. Source: FSC

Unified rules aim to curb misuse of withdrawal-delay exemptions

The FSC said that under the new rules, exchanges must assess factors like trading frequency, account history and deposit and withdrawal amounts when determining whether a user qualifies for a withdrawal-delay exemption. 

The regulator said the change is expected to reduce the number of users eligible for exemptions sharply. The FSC said a simulation showed the share of users eligible for exemptions would fall to around 1% under the new rules, but did not provide a baseline for comparison.

Related: South Korean brokerage Korea Investment & Securities eyes Coinone stake: Report

The FSC said it will also strengthen oversight of users granted exemptions through periodic checks, including verification of the source of funds, and by building systems to monitor suspicious withdrawal activity. 

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The regulator added that they will continue reviewing the rules to prevent new circumvention methods and adjust as needed. 

The move adds to a broader push by South Korean regulators to tighten oversight of crypto exchanges following recent incidents. 

On Tuesday, the FSC ordered exchanges to reconcile internal ledgers with actual asset holdings every five minutes after an inspection linked to the Bithumb payout error found gaps in internal controls and risk management systems.

On Jan. 29, South Korea expanded crypto licensing scrutiny to cover exchanges and major shareholders. 

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Magazine: ‘Phantom Bitcoin’ checks, Drift hack linked to North Korea: Asia Express