South Korea Lifts Ban on Corporate Crypto Trading
1min read South Korea is set to lift its ban on corporate cryptocurrency trading, a move that has been anticipated since early this year. The country's Financial Services Commission (FSC) has outlined a phased approach to allow institutions to participate in the virtual assets trading market.
The first phase of the program, expected to commence in the first half of the year, will permit law enforcement agencies, non-profit organizations, school corporations, and universities to sell cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) for cashing out purposes. These entities will be allowed to access services on virtual asset exchanges.
In the second half of the year, South Korea will roll out a pilot program for buying and selling cryptocurrencies for approximately 3,500 listed companies and corporations. This will open up digital asset trading to professional investors registered under the country's Capital Market Act.
The ban on crypto trading for corporations and other professional entities was implemented in 2017 to address speculation, money laundering, and market manipulation. However, the enactment and enforcement of the country's Virtual Asset User Protection Act have provided key protections for users, paving the way for this policy shift.
The global trend of countries allowing corporations to enter and participate in the digital asset market, coupled with the demand for blockchain-related investment and services, has necessitated this change in the local market. The FSC plans to form a task force involving related organizations to release a regulatory framework for internal control standards. The task force will include the Financial Supervisory Service, the Korea Federation of Banks, and the Digital Asset eXchange Alliance (DAXA). Collaboration with market participants such as exchanges and industry experts is also crucial to the roadmap targeting corporate entry into the virtual asset market.
