South Korea's Financial Services Commission (FSC) is preparing to ease restrictions on corporate cryptocurrency trading through a phased approach that will allow institutional investors to enter the digital asset market.
According to a report from Yonhap News Agency, the FSC plans to begin issuing real-name accounts to institutional investors, starting with non-profit organizations. This marks a notable shift from current regulations, which limit crypto trading to retail investors with verified accounts.
While no explicit ban exists on institutional crypto trading in South Korea, banks have historically been discouraged from providing real-name accounts to corporations. The FSC aims to address this through discussions with the Digital Asset Committee.
The regulatory changes are part of broader initiatives to modernize South Korea's financial sector. The FSC intends to implement new measures supporting fintech company growth and improving coordination between traditional financial institutions and fintech firms.
Additional regulatory updates will focus on cryptocurrency exchange operations, particularly regarding token listing procedures and stablecoin management.
The Korea Exchange is also exploring the possibility of approving crypto spot ETFs by 2025, as mentioned by Chairman Jeong Eun-bo at a recent market opening ceremony. These developments align with the FSC's plans to permit security token offerings by companies.
This regulatory evolution reflects South Korea's growing acceptance of institutional participation in cryptocurrency markets while maintaining appropriate oversight and controls.