South Korea Announces Roadmap for Corporate Participation in Crypto Market

The South Korean government has finalized discussions on permitting corporate participation in the crypto market. The Financial Services Commission (FSC) announced a "Roadmap for Corporate Participation in the Virtual Asset Market" to integrate corporate entities while ensuring user protection and financial stability.

Since 2017, corporate trading of virtual assets was banned due to concerns over money laundering.
The introduction of the Virtual Asset User Protection Act prompted a policy shift towards institutional participation.
South Korea aims to align with countries like the US, Hong Kong, and Canada that allow corporate crypto trading.

Phased Rollout of Corporate Participation

In H1 2024, real-name accounts will be issued for selling purposes.
Law enforcement can sell confiscated crypto assets from criminal cases.
By Q2, universities and charities can convert crypto donations to fiat currencies.
Specific guidelines will support non-profits in managing digital assets.
Crypto exchanges may convert transaction fees for operational expenses.
A joint “sale guideline” will be established to prevent conflicts of interest.

Pilot Program for Institutional Investment

A pilot program for institutional investors will launch in H2 2024.
About 3,500 registered companies will participate, excluding financial institutions.
Participants must comply with new regulatory measures for cross-border transactions.
The Foreign Exchange Transactions Act will oversee corporate crypto investments.