South Korea’s Financial Services Commission (FSC) announced plans to gradually open the cryptomarket for companies, which marks a shift from a long-term ban on institutional trade.
The policy, which is set out during the third meeting of the Virtual Asset Committee, will enable selected entities to trade digital assets under a phased approach that is this year.
Phased approach
The FSC will first allow government agencies, non-profit organizations and crypto exchanges to carry out crypto-sale for liquidation purposes in the first half of 2025.
By the second half, around 3,500 registered professional investment firms and listed companies will be allowed to participate in crypto -trade via a pilot program.
Since 2017, business trade of digital assets has been largely limited due to concern about market speculation and money laundering. The determination of the Virtual Asset User Protection Act in July 2024, however, offered a regulation framework for expanding access.
The FSC mentioned the increasing demand from domestic companies about blockchain-related companies and noted that large economies already allow institutional participation in cryptom markets.
To reduce the risks, the FSC will introduce stronger anti-money laundering practices, independent guardianship requirements and mandatory disclosures. Banks and fairs will assess company requesters before they grant bills, thereby guaranteeing compliance with the financial regulations.
Tighter supervision
The committee also discussed the concerns about the fast list of new cryptocurrencies in domestic fairs, which contributed to price volatility. The FSC plans to introduce stricter criteria and transparency measures to prevent market manipulation.
In addition to the crypto policy shift, the meeting has assessed legislative efforts to regulate tokenized effects under the Capital Markets Act in South Korea.
The laws are considering changes to recognize legally distributed ledger-based financial instruments, a movement that could further integrate blockchain technology into the financial system of the country.
The FSC will work with financial supervisors, banking associations and crypto exchanges to complete implementation data. While this route map indicates an important policy shift, broader business participation in crypto markets will depend on further regulatory evaluations and market conditions.