South Korea’s Financial Services Commission (FSC) is moving toward allowing corporate cryptocurrency investments, signaling a dramatic shift in the country’s regulatory approach. The FSC announced plans to gradually loosen prohibitions on corporate involvement in digital assets by enabling firms to create real-name trading accounts, which is an important step for institutional investors wishing to enter the cryptocurrency market.
Historically, South Korea has been wary regarding corporate crypto investments, with regulators encouraging banks not to issue real-name accounts to businesses despite the lack of an explicit legal restriction. However, the new strategy will begin with non-profit organizations before moving on to other companies, ensuring a gradual and secure deployment.
This regulation adjustment is consistent with the Virtual Asset User Protection Act of 2024, which seeks to protect retail investors and foster market stability. The FSC intends to stimulate growth in the virtual asset market while retaining strict monitoring by gradually allowing corporate involvement.
The move comes as bitcoin continues to gain popularity in South Korea, where more than 30% of the population invests in digital assets. As the country’s legislative framework evolves, the move to enable corporate participation may attract institutional investors and spur greater innovation in the cryptocurrency market.
While the timing for full corporate access remains undetermined, this step points to a more open and progressive approach to bitcoin investment in South Korea.
