South Korea’s Monetary Companies Fee (FSC) introduced plans to steadily open the crypto market to firms, marking a shift from a long-standing ban on institutional buying and selling.
The coverage, outlined throughout the third assembly of the Digital Asset Committee, will enable choose entities to commerce digital belongings below a phased strategy starting this yr.
Phased strategy
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 corporations and publicly traded firms will probably be allowed to take part in crypto buying and selling by means of a pilot program.
Company buying and selling of digital belongings has been largely restricted since 2017 as a result of issues over market hypothesis and cash laundering dangers. Nevertheless, the enactment of the Digital Asset Person Safety Act in July 2024 offered 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, unbiased custody necessities, and necessary disclosures. Banks and exchanges will assess company candidates earlier than granting accounts, making certain compliance with monetary laws.
Tighter oversight
The committee additionally mentioned issues over the speedy itemizing of recent 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 control tokenized securities below South Korea’s Capital Markets Act.
Lawmakers are contemplating amendments to legally acknowledge distributed ledger-based monetary devices, a transfer that might 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 indicators a significant coverage shift, broader company participation in crypto markets will depend upon additional regulatory evaluations and market situations.
