David Edwards
The Financial Services Commission (FSC) of South Korea is indicating a major regulatory change in the country’s digital asset environment by taking gradual steps to authorize cryptocurrency investments for institutional investors. The FSC intends to permit corporate cryptocurrency trading by permitting the issuance of real-name corporate trading accounts, according to a January 8 Yonhap News article.
This project is in line with the FSC’s 2025 work plan, which places a high priority on financial stability and encourages financial industry innovation. business engagement in cryptocurrency markets is essentially restricted since local regulators have historically encouraged banks against opening business real-name accounts, despite the fact that there are no legal restrictions on this practice.
Discussions and Regulatory Obstacles
Through discussions with the Virtual Asset Committee, which met for the first time in November 2024, the FSC hopes to expand corporate cryptocurrency investments. Timeline and execution specifics are yet unknown, though. “There are many issues in the market at the moment… it is difficult to give a definitive answer on the specific timing and content,” said a person close to the FSC’s crypto division.
The decision is made in the midst of ongoing dispute. The FSC refuted reports in December 2024 that it would release a corporate crypto plan by the end of the year, stating that specific actions were still being discussed.
Demands for Worldwide Alignment
Kwon Dae-young, the secretary-general of the FSC, emphasized the necessity for South Korea to harmonize its crypto laws with global norms. During a briefing, Kwon listed the main regulatory priorities, which include developing conduct guidelines for virtual asset exchanges, addressing stablecoin monitoring, and creating listing criteria. Kwon declared, ““We will work to align with global regulations in the virtual asset market,” Kwon stated, signaling South Korea’s intent to remain competitive in the evolving crypto economy.
Political unrest serves as the backdrop for the FSC’s operations. President Yoon Suk Yeol, who is currently facing impeachment, imposed martial law in December 2024, leaving South Korea struggling with a leadership crisis. On January 8, the acting president issued a warning about possible conflicts between law enforcement and the presidential security detail, while Yoon’s legal team denounced attempts to detain him
