Discussions on the next stage of cryptocurrency guidelines initiated by South Korea, emphasizing stablecoins and user safety, are set to begin, with a proposed plan likely to emerge around mid-2025.
According to a report from local news source EDaily, the Financial Services Commission of South Korea has begun drafting the next stage of its cryptocurrency regulations aimed at enhancing user security.
Kim So-young, a Vice Chairman at the FSC, stated that they plan to proceed with phase two of their actions, as the international cryptocurrency market is experiencing swift changes accompanied by a blend of optimism and apprehension. The Virtual Asset User Protection Act, South Korea’s initial regulation for cryptos, was enforced in July 2024. This act defines “virtual assets,” establishes guidelines for user protection, tackles unjust trading practices, and outlines penalties.
It’s expected that the new guidelines will encompass topics like stablecoins, cryptocurrency exchanges, and business entrance requirements. However, specifics are still under wraps. The Financial Services Commission is said to be collaborating with other government bodies to finalize the second stage of this law by mid-2025, but precise deadlines haven’t been announced yet.
South Korea easing crypto restrictions
Currently, South Korea is contemplating loosening restrictions for corporations involved in cryptocurrency trading. They also plan to progressively provide real-name accounts to institutional investors. This change will enable businesses, starting with non-profits, to open real-name accounts at cryptocurrency exchanges.
At present, only retail investors in South Korea who possess verified real-name accounts are allowed to engage in cryptocurrency trading. Although there’s no outright prohibition for institutional investors, financial institutions have been counseled against establishing real-name accounts for corporations.
In January 2024, the head of South Korea’s Exchange, Jeong Eun-bo, announced that they aim to investigate the possibility of approving crypto spot ETFs in 2025. This comes as rumors suggest that the Financial Services Commission is open to allowing businesses to issue security token offerings. During a speech at the Securities and Derivatives Market Opening Ceremony 2025, Jeong mentioned that they will look towards international examples for emerging ventures like cryptocurrency ETFs and continue to expand into new sectors in the financial market.
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2025-01-15 11:39