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South Korea makes progress on corporate crypto investment approval

South Korea makes progress on corporate crypto investment approval

GrafaGrafa2025/01/09 04:50
By:Mahathir Bayena

South Korean regulators are moving forward with plans to allow institutional investors to trade cryptocurrencies, according to recent reports.

The Financial Services Commission (FSC) is preparing to gradually permit corporate investments in digital assets by issuing real-name corporate trading accounts.

This initiative was revealed as part of the FSC’s 2025 work plan, which aims to focus on financial stability and accelerate innovation.

Although there are no legal restrictions on issuing real-name accounts for corporations, local banks have been guided by regulators to avoid issuing them, according to the Yonhap news agency.

The FSC is set to review the gradual rollout of corporate crypto investments with the Virtual Asset Committee, which held its first meeting in November 2024.

However, no clear timeline has been provided for when the discussions or approval process will take place.

“There are many issues in the market at the moment, so we are coordinating the timing of the committee meeting and the topics of discussion, so it is difficult to give a definitive answer on the specific timing and content,” A source close to the FSC’s crypto division stated.

These developments come amid ongoing debates in South Korea regarding the approval of corporate crypto investments.

In December 2024, the FSC denied reports that it would publish a roadmap for allowing corporate crypto accounts by the end of the year, clarifying that specific measures were still under review.

FSC Secretary-General Kwon Dae-young also stressed the importance of aligning South Korea’s crypto frameworks with global regulations.

“We need to discuss how to create listing standards, what to do with stablecoins, and how to create rules of conduct for virtual asset exchanges,” he said. 

The push for regulatory clarity on corporate crypto investments comes amid ongoing political turmoil, as South Korea grapples with the fallout from President Yoon Suk Yeol’s controversial martial law declaration in December 2024.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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