South Korea to unlock institutional crypto investments
Nearly one-third of South Korea trades crypto
South Korea is preparing to open institutional crypto investments and establish a new digital asset market following global best practices.
According to Kim So-young, Vice Chairman of the Financial Services Commission (FSC) of South Korea, the FSC will release crypto investment guidelines for non-profit organizations and crypto markets by April, while guidance for public companies and professional investors will be introduced by Q3 2025.
In February, the FSC outlined a roadmap for companies entering the crypto market, signaling a gradual opening for institutional participants.
With the release of detailed guidelines, South Korea is shifting to a more open stance on crypto assets, moving away from its previously strict restrictions on their integration into traditional financial markets.
Nearly one-third of South Korea trades crypto
South Korea’s crypto market is among the world’s largest and most altcoin-heavy, and institutional participation could further accelerate its growth and streamline crypto transactions for retail investors.
According to Korea Economic Daily, as of November 2024, approximately 15.6 million South Koreans—around 30% of the population—were actively trading crypto, demonstrating widespread adoption in the country.
Kim So-young stated that the upcoming guidelines will incorporate "best practices" for large-scale crypto investments, covering trading rules, disclosure requirements, and reporting standards.
South Korea eyes global crypto trends, including Bitcoin reserves
South Korea is closely monitoring global developments, particularly the U.S. initiative to establish a national Bitcoin reserve.
In a significant move, Korea Exchange (KRX) Chairman Jeong Eun-bo recently suggested that the exchange could explore spot crypto ETFs, drawing inspiration from international models.
Additionally, the FSC previously announced plans to allow charitable organizations and colleges to sell their crypto holdings in Q2 2025 as a first step toward broader institutional adoption.
This policy shift will have a major impact on South Korea’s crypto market, which previously restricted trading to individual investors with verified accounts and prohibited banks from opening corporate crypto accounts—a restriction that is now set to change.
As we wrote, South Korea is taking decisive action to curb cryptocurrency-related financial crimes by overhauling its Anti-Money Laundering (AML) regulations.
