South Korea to allow corporations to buy and sell crypto by year-end
Corporations in South Korea to buy and sell crypto by year-end
South Korea’s Financial Services Commission (FSC) has announced plans to lift its longstanding ban on corporate cryptocurrency trading, paving the way for businesses to participate in the digital asset market by the end of 2024.
In a press release issued on Feb. 13, the FSC outlined a phased approach to easing restrictions that have been in place since 2017, according to Crypto News.
The first phase, set to begin in the first half of the year, will allow law enforcement agencies, universities, and nonprofit organizations to sell digital assets such as Bitcoin and Ethereum on virtual asset exchanges.
A structured approach to corporate crypto trading
The second phase, expected to roll out in the latter half of 2024, will extend crypto trading permissions to roughly 3,500 publicly listed companies and corporations. These firms will be able to buy and sell digital assets, marking a significant shift in South Korea’s approach to institutional crypto participation.
The FSC attributed this policy change to the recent enactment of the Virtual Asset User Protection Act, which introduced safeguards against money laundering and market manipulation. The move also aligns with global trends as other financial hubs integrate corporate players into the cryptocurrency sector.
To ensure a smooth transition, the FSC will establish a task force involving the Financial Supervisory Service, the Korea Federation of Banks, and the Digital Asset eXchange Alliance (DAXA). This group will develop a regulatory framework, including internal control standards, to guide corporate engagement in the crypto market.
The policy shift is expected to encourage blockchain-related investments in South Korea, reinforcing the country’s position as a key player in the evolving digital economy.
South Korea is hesitant to approve cryptocurrency ETFs, lagging behind the U.S. in institutional adoption. KOFIA President Seo Yoo-seok urges lawmakers to allow spot-traded Bitcoin and Ethereum ETFs, citing rising demand.
