Kasa Korea may get permission to sell real estate certificates to investors through its blockchain platform.
The Financial Supervisory Commission accepted Thursday Kasa Korea’s application.
The commission would give a special exemption to the company to use the blockchain-based platform to sell the certificates.
The commission said once the blockchain-based trial operation is successful, Kasa Korea would get permission.
Once it gets approval, investors would get digital certificates backing the underlying property pool from Kasa Korea. Investors could also sell digital property certificates through Kasa Korea’s blockchain platform.
In return, Kasa Korea retains the ‘real’ property certificates.
Kasa Korea uses the digital features of its property trust certificates. However, it could not use the blockchain’s two main elements. First of all, it ‘centralized’ the operation of the platform. Second, it could not issue tokens or cryptocurrencies based on real estate trust asset.
Kasa Korea formed a consortium with such financial institutions as KB Bank, Hana Bank, Koramco (Korea Real Estate Management Company), KAIT, and Korea Real Estate Management and Trust (KOREIT).
The consortium would use the blockchain platform to sell and manage paper works linked to real estate management and trust business.
The blockchain platform would upgrade security in issuing, trading and managing real estate trust certificates. The platform would help investors buy and sell the certificates without exchanging the underlying paper-based documents.
South Korea bans companies from using a blockchain platform to issue coins for raising capital.