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South Korea’s Financial Services Commission (FSC) has announced plans to lift a long-standing ban on institutional crypto trading. This move comes in response to the growing global participation in digital assets and rising demand from domestic companies.
Who Will Be Allowed to Trade and When?
- First Half of the Year: Charities, universities, schools, and law enforcement agencies will be allowed to sell their virtual assets.
- Second Half of the Year: Listed companies and professional investors will gain approval to buy and sell cryptocurrency.
Why Was Crypto Trading Restricted?
- The ban was introduced in 2017 to curb excessive speculation and address concerns about money laundering.
- Under the old regulations, corporations and banks were prohibited from directly trading digital assets.
What Changed?
- South Korea has now implemented the Virtual Asset User Protection Act, which sets new safeguards for crypto investors.
- The FSC noted that major economies already allow corporate participation in the crypto market.
- Domestic companies have shown increasing interest in blockchain-related businesses, prompting the regulatory shift.
