South Korea Allows Non-Profits and Exchanges to Sell Crypto Starting June
South Korea's Financial Services Commission (FSC) announced new regulations allowing non-profit organizations and virtual asset exchanges to sell their crypto holdings starting in June. Key points include:
- Non-profits must have five years of audited operations and internal committees for donation vetting.
- Only crypto listed on at least three Korean won-based exchanges is eligible for acceptance.
- Donated tokens must be sold immediately.
- Exchanges can sell crypto solely to raise operational capital, with daily sale limits and a prohibition on self-platform sales.
- Sales are limited to the top 20 coins by market capitalization traded on major Korean exchanges.
- Transactions must adhere to anti-money laundering standards.
- New listing rules mandate filtering out low-volume "zombie" coins and stricter criteria for memecoins.
These updates aim to enhance investor protection and reduce price volatility. Further expansions of these rules for corporations and institutional investors are expected later this year.