South Korea Boosts Crypto Market with New Institutional Access Rules

South Korea is taking significant steps to boost institutional participation in the cryptocurrency market, with the Financial Services Commission (FSC) implementing a series of measures to expand access and enhance regulatory oversight. The new policy, set to be fully implemented by the second half of 2025, will allow universities and charities to sell crypto donations, while also enforcing stricter regulations to ensure security and transparency.

The FSC's plan includes granting institutions the authority to sell crypto donations and providing enhanced services from banks for crypto-related businesses. This new policy structure aims to promote regulatory measures that benefit virtual asset transactions. Real-name accounts targeting the selling function will become available throughout the first semester of this year, further facilitating institutional involvement in the crypto market.

In addition to these measures, the FSC is working on a gradual plan to integrate corporate participation in crypto markets, incorporating safety procedures for users and market stability elements. The National Tax Service and Korea Customs Service have already established new accounts to manage confiscated digital assets. By the second year of 2025, non-profit institutions will be able to obtain corporate real-name accounts to manage crypto donations, ensuring fundraising transparency and proper asset utilization.

The FSC is also planning to establish guidelines to prevent market instability during large-scale exchange asset sales. In the second half of the year, selected institutional investors, including 3,500 listed companies, will be able to participate in crypto trading through a new program. To mitigate risks, the verification process of bank transactions will be strengthened, and banks will actively promote third-party crypto storage services. The authorities will also strengthen mandatory disclosure requirements for investors.

The government is committed to developing policies that balance innovation with financial security, ensuring a stable crypto market for the future. The FSC is conducting evaluations of token security regulatory methods and proposing modifications to the Electronic Securities Act to introduce institutional standards for token securities, enhancing digital security market accessibility.