Catenaa, Tuesday, January 14, 2025 – South Korea is preparing to lift its effective ban on institutional cryptocurrency trading, according to the Financial Services Commission (FSC), the nation’s top financial regulator.
The FSC intends to allow institutional investors to open trading accounts on crypto exchanges in stages, starting with non-profit organizations, Yonhap News Agency reported Wednesday. This move aligns with President Yoon Suk-yeol’s campaign promises to bolster the local cryptocurrency sector.
Currently, only retail traders verified with government-issued identification can trade cryptocurrencies in South Korea. While no explicit ban exists on institutional investors, the FSC has advised banks to restrict such accounts.
The regulator is also working with the Digital Asset Committee to develop a regulatory framework under the Virtual Asset Investor Protection Act, which took effect last year. Planned amendments include rules governing stablecoins, crypto exchanges, token listings, and a screening process for major shareholders of virtual asset service providers.
Additionally, the FSC and ruling People Power Party have been advocating for the introduction of spot cryptocurrency exchange-traded funds (ETFs), which are currently unavailable in South Korea.
This gradual lifting of restrictions represents a broader effort by the government to position South Korea as a leader in the global cryptocurrency market while ensuring investor protections through comprehensive regulation.
