In a significant development for the cryptocurrency landscape, South Korea’s Financial Services Commission (SFC) has announced plans to lift the ban that has hitherto restricted institutional trading of crypto assets. This decision comes amid a marked increase in global participation within the cryptocurrency market, which has been garnering attention from investors and institutions alike.
According to a statement released by the SFC on Thursday, non-profit organizations—including charities, educational institutions, and law enforcement agencies—will be permitted to sell their virtual assets by the first half of the year. Furthermore, by the second half of the year, listed companies and professional investors will be granted the ability to engage in buying and selling crypto, marking a pivotal shift in the regulatory landscape.
Previously, corporations and banks have faced stringent restrictions regarding virtual asset trading, a policy imposed by the South Korean government since 2017. This regulatory framework was intended to mitigate concerns associated with excessive speculation and to address issues of money laundering that were prevalent at the time of enforcement.
With the imminent implementation of the Virtual Asset User Protection Act, the SFC is establishing a solid foundation for safeguarding users within the cryptocurrency space. This measure underscores the regulatory body’s commitment to fostering a secure environment as the market evolves.
The SFC’s statement articulated a broader perspective, highlighting that significant international jurisdictions have already embraced a more permissive stance towards corporate involvement in the digital asset market. As domestic companies report an increasing demand for innovative blockchain-related business opportunities, the SFC appears poised to align South Korea with global trends in the cryptocurrency sphere.
