- South Korea prohibited business cryptography trade in 2017 due to money laundering problems, but now has regulated institutional access.
- The Financial Services Commission will allow 3,500 professional investors qualified to open real accounts for blockchain investments at the end of 2025, starting with a pilot program.
- The new executive favors consumer protection thanks to improved guarantees, including transaction directives, third -party care requirements and increased disclosure obligations for investors.
Crypto is a popular asset class among traders and investors in South Korea. In a country plagued by a high cost of life and wages not following the pace – the capital Seoul has become one of the most expensive cities to buy or rent – Crypto is considered a way to follow the Jones or the kims this affair.
Especially the youngest of the Koreans hope that they will be able to earn easy money with the help of Bitcoin and Co (although it is often even) and XRP is one of the most popular advantages in the country.
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Now it seems that the government lets institutional players join the game.
In a press releaseThe Financial Services Commission has announced that it would soon authorize “virtual asset asset market transactions”.
The concerns of money laundering have triggered past prohibitions
During a meeting on February 13, the regulator, with “related ministry managers and private sector experts”, also decided that they would develop a framework on the registration of virtual assets “to help solve the problem the registration of competition between exchange service providers ”.
They also “examined the progress of the regulatory reform concerning the introduction of the supply of security tokens (STO)”.
This decision comes after companies were prohibited from exchanging digital assets in 2017 to fear money laundering and “overheating of the market”.
Thus, the government has decided to prohibit virtual asset business transactions to help alleviate very speculative market conditions, and as routine practice, banks have restricted the opening of real verified accounts for companies intended for virtual asset transactions.
South Korea Financial Services Commission
In 2024, South Korea implemented the “Virtual Asset User Protection Act”, which provides a legal basis for digital asset operations and consumer protection in the Eastern Asian country.
With the global demand for crypto and blockchain products and services, the local virtual asset committee has seen the need to establish clear guidelines.
The South Korea roadmap for digital active trading
The start of the new era for business crypto trade is not so exciting, because the first companies will only be authorized to open the “real verified accounts” for sell their digital assets in Fiat. What looks more like the outlet of space rather than entering.
Law application organizations – such as prosecutors, tax services, customs – have already received access in late 2023.
In addition, qualified non -profit organizations and universities will have access to T2 2024, with the support of a working group to establish internal checks.
Then, the exchanges of crypto will be authorized to convert their income from cash for operational costs, but only after having established joint guidelines to prevent conflicts of interest during large -scale sales.
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In the second half of 2025, a pilot test will allow 3,500 corporate entities, recognized as qualified professional investors, to open real accounts for blockchain investments. This will include strict guarantees such as transaction directives, third -party care and improved disclosure of investors, while financial companies will focus on secure tokens offers to mitigate systemic risks.
