South Korea’s Financial Services Commission (FSC) announced plans to gradually open the crypto market to corporations, marking a shift from a long-standing ban on institutional trading.
This policy was outlined at the Virtual Asset Committee’s third meeting. It will permit select entities to begin trading digital assets in phases this year.
The phased approach
In the first half 2025, FSC first permits government agencies, not-for-profits, and cryptocurrency exchanges to sell crypto for liquidation.
A pilot program will allow approximately 3,500 professional investment firms registered and publically traded companies to take part in cryptocurrency trading by the end of second-half.
Since 2017, corporate trading in digital assets is largely limited due to fears over money laundering and market speculation. The Virtual Asset User Protection Act, which was passed in July 2024, provided the regulatory framework to expand access.
FSC noted the increasing interest from businesses in blockchain related ventures.
In order to mitigate risk, the FSC is introducing stronger anti-money launderage measures, as well as independent custody requirements and mandatory disclosures. Before granting corporate accounts, banks and exchanges are required to assess applicants. This is done in order to ensure compliance with the financial regulations.
Tighter oversight
A concern was also raised about the price volatility caused by the rapid list of new cryptocurrency on local exchanges. To prevent manipulation of the market, FSC will introduce more stringent listing criteria as well as transparency measures.
In addition to the crypto policy shift, the meeting reviewed legislative efforts to regulate tokenized securities under South Korea’s Capital Markets Act.
Lawmakers are considering amendments to legally recognize distributed ledger-based financial instruments, a move that could further integrate blockchain technology into the country’s financial system.
To finalize the implementation details, FSC will collaborate with financial regulators as well as banking associations and crypto exchanges. The FSC’s roadmap is a big step in policy, but the extent to which corporations will participate in crypto markets depends on regulatory and market evaluations.
South Korea, Cryptocurrency, Featured Articles, Regulation The Author 
Assad Jafri
AJ has been a journalist for more than a decade, and he’s been a fanatic since the 2011 Arab Spring in Yemen. Specialized in financial journalism and focusing on crypto-reporting, he is now focused on this area.
Email @Saajthebard on LinkedIn Editor
News Desk
CryptoSlate offers a comprehensive source of crypto-related news, insight, and statistics. Featuring Bitcoin, macroeconomics, DeFi, AI and DeFi.
Twitter Email Editor @cryptoslate Ad 
TRON’s 2024 recap: Messari’s, CryptoQuant’s, CryptoRank’s, and Cointelegraph’s reports highlight record growth.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
