South Korea is easing its ban on corporate crypto trading, allowing institutions to enter the market in phases. Could this reshape the country’s digital asset landscape?
South Korea to Allow Corporate Crypto Trading in Phases
South Korea is taking a major step toward corporate crypto adoption. The Financial Services Commission (FSC) has announced a phased approach to lifting the ban on institutional crypto trading.
A ban has been in place since 2017 to curb speculation, money laundering, and market manipulation. However, with global trends shifting and growing demand for blockchain-based investments, South Korea is revisiting its stance.
Phase 1: Limited Crypto Sales Allowed
🔹 In the first half of 2024, select entities—law enforcement agencies, non-profits, schools, and universities—will be allowed to sell crypto like Bitcoin and Ethereum for cashing-out purposes.
🔹 These institutions will gain access to virtual asset exchanges, marking the first step toward broader adoption.
Phase 2: Full Trading Access for Corporations
🔹 In the second half of the year, a pilot program will permit 3,500 listed companies and professional investors registered under South Korea’s Capital Market Act to buy and sell digital assets.
🔹 This will mark a significant shift in the country’s approach, aligning it with global trends where corporations are increasingly embracing crypto investments.
Regulatory Framework & Market Oversight
To ensure a smooth transition, the FSC is forming a task force to establish internal control standards for corporate crypto trading.
This framework will involve key regulatory bodies, including:
✔️ Financial Supervisory Service
✔️ Korea Federation of Banks
✔️ Digital Asset eXchange Alliance (DAXA)
Additionally, collaboration with exchanges and industry experts will be crucial to shaping South Korea’s corporate crypto trading landscape.
Why This Matters
✅ Global Trend – Countries worldwide are allowing institutions to participate in the crypto market.
✅ Growing Demand – South Korea’s digital asset market is expanding, and regulations must adapt to new realities.
✅ Stronger Protections – With the Virtual Asset User Protection Act in place, users and investors are better safeguarded.
As South Korea gradually opens the doors for corporations, will this spark a new wave of institutional crypto adoption?
