Catenaa, Friday, January 24, 2025 – South Korea regulators have issued a second Virtual Asset Service Provider (VASP) license to brokerage firm Happy Block, which may signal a softening stance on corporate cryptocurrency investments.
The Financial Intelligence Unit (FIU), operating under the Financial Services Commission (FSC), approved Happy Block’s application this week. The decision follows a similar approval for Waybridge in December, reflecting gradual changes in the government’s approach to crypto regulation.
Happy Block, a digital securities company launched in 2022, plans to offer over-the-counter crypto brokerage services and tools for institutional investors. The firm, backed by SK Securities, also develops custody solutions and platforms for large-scale transactions.
Current regulations prevent businesses from linking corporate accounts to cryptocurrency exchanges, as digital assets are not classified as financial investment products under the Capital Market Act. However, the FSC has hinted at a cautious policy shift, with officials suggesting they may review restrictions on corporate crypto holdings and consider approving Bitcoin exchange-traded funds (ETFs).
Industry experts say the approval of brokerage services like Happy Block could set the stage for broader institutional adoption of cryptocurrencies. Happy Block CEO Kim Gyu-Yoon pledged to align with government directives on investor protection, taxation, and anti-money laundering measures.
The company’s licensing process took nearly 18 months, reflecting the challenges of operating in one of Asia’s most tightly regulated crypto markets. The FSC remains cautious but has acknowledged global trends in digital asset regulation.
This approval could begin a broader shift in South Korea’s approach to cryptocurrency, potentially allowing businesses to invest in Bitcoin and other tokens.
