South Korea’s Monetary Companies Fee (FSC) introduced plans to steadily open the crypto market to companies, marking a shift from a long-standing ban on institutional buying and selling.
The coverage, outlined through the third assembly of the Digital Asset Committee, will enable choose entities to commerce digital property underneath a phased method starting this 12 months.
Phased method
The FSC will first allow authorities companies, non-profit organizations, and crypto exchanges to conduct crypto gross sales for liquidation functions within the first half of 2025.
By the second half, roughly 3,500 registered skilled funding companies and publicly traded firms will likely be allowed to take part in crypto buying and selling by means of a pilot program.
Company buying and selling of digital property has been largely restricted since 2017 resulting from issues over market hypothesis and cash laundering dangers. Nevertheless, the enactment of the Digital Asset Consumer Safety Act in July 2024 supplied a regulatory framework for increasing entry.
The FSC cited growing demand from home companies for blockchain-related ventures and famous that main economies already enable institutional participation in crypto markets.
To mitigate dangers, the FSC will introduce stronger anti-money laundering measures, impartial custody necessities, and necessary disclosures. Banks and exchanges will assess company candidates earlier than granting accounts, guaranteeing compliance with monetary laws.
Tighter oversight
The committee additionally mentioned issues over the fast itemizing of latest cryptocurrencies on home exchanges, which has contributed to cost volatility. The FSC plans to introduce stricter itemizing standards and transparency measures to forestall market manipulation.
Along with the crypto coverage shift, the assembly reviewed legislative efforts to manage tokenized securities underneath South Korea’s Capital Markets Act.
Lawmakers are contemplating amendments to legally acknowledge distributed ledger-based monetary devices, a transfer that would additional combine blockchain expertise into the nation’s monetary system.
The FSC will work with monetary regulators, banking associations, and crypto exchanges to finalize implementation particulars. Whereas this roadmap alerts a significant coverage shift, broader company participation in crypto markets will depend upon additional regulatory evaluations and market situations.
