South Korea is set to gradually ease restrictions on corporate crypto trading,
On February 13, the FSC issued a press release detailing a phased approach to lifting the ban that has prevented institutions from engaging in the virtual asset market. Reports about South Korea considering this policy shift surfaced earlier this year.
In the first phase, law enforcement agencies, non-profit organizations, school corporations, and universities will be permitted to sell cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). This will primarily serve as a means to cash out, with these entities gaining access to virtual asset exchanges in the first half of the year.
The second phase will introduce a pilot program allowing approximately 3,500 publicly listed companies and corporations to buy and sell crypto. Expected to launch in the latter half of the year, this initiative will enable professional investors registered under the Capital Market Act to participate in digital asset trading.
Since 2017, corporate crypto trading has been prohibited due to government concerns over speculation, money laundering, and market manipulation. However, the FSC stated that the recent enactment of the Virtual Asset User Protection Act has established essential safeguards for users.
To support this transition, the FSC plans to assemble a task force comprising key organizations. This group, including the Financial Supervisory Service, the Korea Federation of Banks, and the Digital Asset eXchange Alliance (DAXA), will develop a regulatory framework for internal control standards. The FSC also emphasized the importance of collaboration with exchanges and industry experts to shape corporate involvement in the virtual asset sector.
