South Korea Plans to Lift Ban on Corporate Crypto Investment

It appears that South Korea is contemplating a phased removal of its restriction on companies investing in digital assets, with the process expected to commence this year.

On January 8th, I uncovered some significant advancements in our study, as reported by Yonhap News. These updates stemmed from the country’s financial regulatory body, the Financial Services Commission (FSC), which shared this information.

Institutional Crypto Investment Coming to South Korea

It appears that the Financial Security Commission (FSC) is planning to make it easier for institutional investors to enter the digital asset market. This step could lead to a more controlled and secure investment landscape for both individual and institutional crypto investors within the nation.

At present, South Korean rules only allow corporations to have real-name accounts, even though there’s no existing legal obstacle for providing these accounts.

As an analyst, I can emphasize that having real-name accounts is crucial when it comes to investing in virtual assets. Regrettably, regulators have advised banks against providing such accounts to corporations, thereby curtailing institutional involvement in this market.

Hence, regulators have only permitted retail investors to invest in crypto markets so far.

Based on reports from Yonhap, the Financial Services Commission (FSC) declared on January 8 their intention to assess a proposal that permits companies to establish verifiable accounts on stock exchanges progressively. The process is set to start with non-profit organizations, with broader applications to follow.

2024 saw South Korea enact the ‘Virtual Asset User Protection Act’, a measure designed to safeguard individual cryptocurrency investors and enhance the market’s overall stability.

Currently, it appears that the Financial Stability Council is advocating for the next stage of guidelines regarding digital assets. This encompasses tackling matters such as stablecoins, criteria for listing, and codes of conduct for digital asset trading platforms.

As a crypto investor, I find it crucial that we delve into the creation of listing standards, addressing stable coins, and establishing codes of conduct for virtual asset exchanges. To ensure harmony within the global regulatory landscape of the virtual asset market, I’m committed to working towards compliance with worldwide regulations in this dynamic field.

The latest news comes after it was discovered that over 30% of South Korea’s population is currently investing in cryptocurrency. As of November’s end, there were approximately 15.59 million domestic investors in digital assets, marking an increase of about 610,000 compared to October’s close.

In a positive move, the country has delayed the implementation of a 20% tax on virtual asset earnings that surpass 2.5 million won starting from December. This action seems to indicate South Korea’s intention to adopt crypto-friendly regulations, potentially positioning itself as a leading player in the global cryptocurrency market.

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2025-01-08 14:26