South Korea’s Financial Services Commission (FSC) announced its intention to lift a longstanding ban that has prevented institutions from engaging in cryptocurrency trading. This move comes as a response to the increased global participation in the crypto market.
Initially, non-profit organizations such as charities, universities, and school corporations, as well as law enforcement agencies, will be permitted to sell their virtual assets by the first half of the year.
The second half of the year will see listed companies and professional investors also gaining the ability to buy and sell cryptocurrencies.
Since 2017, corporations and banks in South Korea have faced restrictions on trading virtual assets due to government regulations. These regulations were implemented to curb "overheated speculation" and to tackle concerns surrounding money laundering.
The FSC has indicated that the foundation for user protection in the crypto market has been established with the enforcement of the Virtual Asset User Protection Act. This regulatory framework is aimed at safeguarding users within the evolving digital asset space.
The statement from the FSC highlighted that "Major countries overseas are broadly allowing corporations to participate in the market, and the market environment is changing as domestic companies are also seeing an increase in demand for new blockchain-related businesses." This shift reflects a growing trend of traditional financial institutions and corporations showing interest in the crypto sector.
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