South Korea Lifts Crypto Ban: A New Era for Corporate Investors

South Korea's Financial Services Commission (SFC) has announced plans to lift a ban on corporations trading cryptocurrencies, a move that could significantly boost the country's virtual asset market. The decision comes in response to the growing global participation in the crypto market and the increasing demand for blockchain-related businesses from domestic companies.

The SFC plans to allow non-profit organizations, such as charities, university and school corporations, and law enforcement agencies, to sell their virtual assets by the first half of the year. By the second half of the year, listed companies and professional investors will be permitted to buy and sell cryptocurrencies.

Until now, corporations and banks have been restricted from trading virtual assets due to government regulations implemented in 2017. The ban was put in place to address concerns about overheated speculation and money laundering. However, with the enforcement of the Virtual Asset User Protection Act, a foundation for user protection has been established, paving the way for the lifting of the ban.

The SFC's statement highlighted that major countries overseas are broadly allowing corporations to participate in the crypto market, and the market environment is changing as domestic companies are increasingly seeking new blockchain-related businesses. This shift in policy is expected to open up new opportunities for South Korean corporations and investors in the global crypto market.