South Korea’s Financial Services Commission (FSC) is set to lift a long-standing ban preventing organizations from cryptocurrency trading, responding to the increasing global engagement in the crypto market.
In the year’s first half, non-profit entities like charities, universities, school corporations, and law enforcement agencies will be allowed to sell their virtual assets.
During the second half, public companies and professional investors will also gain the ability to trade cryptocurrencies.
Since 2017, South Korean corporations and banks have faced trading restrictions on virtual assets due to government regulations aimed at curbing speculative excess and addressing money laundering concerns.
The FSC highlighted the Act on the Protection of Users of Virtual Assets as a framework designed to safeguard users in the crypto market. This regulatory structure is intended to provide protection in the evolving digital asset landscape.
The FSC remarked that “Major countries abroad are generally allowing corporations to participate in the market, and the market environment is changing as domestic companies are also seeing increased demand for new blockchain-related businesses.” This shift reflects the rising interest of traditional financial institutions and corporations in the crypto sector.
