South Korea to allow institutional investors to trade crypto: report

In simpler terms, South Korea is contemplating loosening the rules for corporate cryptocurrency transactions. Their strategy involves providing institutional investors with real-name accounts step by step.

According to reports from the Yonhap News Agency, it appears that South Korea is considering a progressive approach to loosening restrictions, allowing corporations to potentially invest in cryptocurrencies. This decision is currently being weighed by the Financial Services Commission. If approved, this change would enable companies – starting with non-profit organizations – to establish real-name accounts on crypto exchanges.

Currently, at the time of reporting, South Korea only permits individual retail investors with verified real-name accounts to participate in cryptocurrency trading. Although there’s no explicit ban for institutional investors, banks have been cautioned not to establish real-name accounts for corporations. However, the Financial Services Commission (FSC) is looking to modify this situation by discussing the issue within their Digital Asset Committee with the intention of changing the current regulations.

Additionally, the financial authority intends to implement strategies that foster expansion among fintech entities. This move aims to strengthen partnerships between conventional financial entities and tech-driven finance companies. Moreover, there will be adjustments in the regulatory approach towards crypto trading platforms, particularly focusing on token listings and managing stablecoins.

In early January, the head of the South Korean Exchange, Jeong Eun-bo, announced plans for the platform to investigate the possibility of approving a cryptocurrency spot ETF in 2025. It appears that the Financial Services Commission (FSC) also intends to permit businesses to launch security token offerings according to recent reports.

At the Securities and Derivatives Market Opening Ceremony 2025, Jeong stated that the exchange intends to use examples from abroad as a guide for launching innovative ventures like cryptocurrency ETFs, and also plans to delve deeper into unexplored sectors of the financial market.

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2025-01-08 14:13