The South Korean government has officially allowed institutions to participate in the cryptocurrency market, adopting a phased approach. The Financial Services Commission (FSC) prioritizes financial stability and investor protection while promoting the entry of companies into the digital asset market under regulatory supervision.
Phased Opening Plan for the Cryptocurrency Market
Starting in the first half of 2025, cryptocurrency sales by institutions through real-name accounts will be permitted. Initially, this system will be utilized for the sale of cryptocurrencies seized by law enforcement agencies, with participation from the National Tax Service and the Customs Service. Additionally, universities and charitable organizations will receive approval to exchange donated cryptocurrencies into legal tender.
Authorization of Cash Conversion for Cryptocurrency Exchanges
Cryptocurrency exchanges have been authorized to cash out trading fees into bank accounts. This enables companies to use trading fees for employee salaries and tax payments. The government plans to establish clear selling guidelines to prevent large trading conflicts, while also reviewing procedures to maintain consistency with existing financial regulations.
Expansion of Institutional Investor Participation
A pilot program targeting institutional investors will start in the second half of 2025. Selected companies will open real-name accounts to participate in cryptocurrency investments, and the Financial Services Commission is preparing for implementation in collaboration with over 3,500 certified companies. Companies with experience in high-risk financial products will be prioritized, and financial institutions will not be included in this program.
Strengthening Regulations on Overseas Cryptocurrency Transactions
All companies handling international cryptocurrency remittances must comply with the regulatory standards set by the Financial Services Commission. Overseas transactions will be subject to the Foreign Exchange Transactions Act, and public institutions plan to establish monitoring and reporting systems to prevent money laundering and illegal financial activities. Companies must submit reports in accordance with regulations when investing in overseas cryptocurrencies, and the Financial Services Commission aims to enhance regulations to improve transparency.
Conclusion
The South Korean government is allowing companies to gradually participate in the cryptocurrency market, supporting the operation of digital assets in a regulated environment. This balanced approach seeks to maintain the stability of financial markets while embracing innovation in the cryptocurrency industry. It is essential to pay attention to the potential impact of these changes on the South Korean financial market moving forward.
- This text does not constitute investment advice or financial recommendations.Cryptocurrency investment involves significant risks, and the responsibility for investment decisions rests solely with the investor.
