8th January 2025 – (Seoul) South Korean regulators are progressing with plans to permit cryptocurrency investments by institutional investors, as reported by local media.
The Financial Services Commission (FSC) has revealed intentions to gradually implement corporate investment in digital assets by allowing the creation of real-name corporate trading accounts, according to Yonhap news agency on 8th January.
This initiative aligns with the FSC’s 2025 work plan, which aims to enhance financial stability while promoting innovation within the sector.
Despite the absence of legal barriers to issuing real-name accounts for corporations, local authorities have effectively discouraged banks from providing such accounts, the report noted.
The FSC is set to evaluate plans for enabling corporate cryptocurrency investments through discussions with the Virtual Asset Committee, which convened for its inaugural meeting in November 2024. However, no specific timeline for advancing this initiative has been outlined in recent reports.
“There are numerous issues in the market currently, so we are coordinating the timing of the committee meetings and the topics for discussion, making it difficult to provide a definitive answer regarding specific timing and content,” a source linked to the FSC’s cryptocurrency division reportedly stated.
The latest developments contribute to the ongoing debate surrounding South Korea’s potential endorsement of corporate cryptocurrency investments. In December 2024, the FSC refuted claims that it would publish a roadmap for corporate crypto accounts by the end of the year, clarifying that concrete measures had yet to be established.
In addition to considering corporate crypto accounts, FSC Secretary-General Kwon Dae-young emphasised the need for South Korea’s cryptocurrency regulations to align with international standards.
“We need to discuss the creation of listing standards, the management of stablecoins, and the establishment of conduct rules for virtual asset exchanges,” he stated, adding, “We will strive to align with global regulations in the virtual asset market.”
These announcements come amid a significant leadership crisis in South Korea following President Yoon Suk Yeol’s controversial declaration of martial law in December 2024. On January 8, lawyers representing the impeached president condemned efforts to detain him over the martial law imposition, while the acting leader expressed concerns about potential conflicts between law enforcement and presidential security personnel.
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