South Korea’s Financial Services Commission (FSC) is promoting institutional participation in the cryptocurrency industry. By mid-2025, charities and universities will be able to sell their cryptocurrency gifts, while financial regulators plan to extend trading opportunities for firms and professional investors.
The FSC previously barred institutional participation in bitcoin transactions, citing worries about speculation and money laundering. However, the anticipated regulation change would progressively allow 3,500 organizations and qualifying investors to register real-name accounts during the first half of the year. These accounts will allow them to acquire and trade digital assets within a supervised environment.
The regulatory authority highlighted that only institutions with excellent risk management capabilities will be participating in the pilot program. The FSC stated that this modification must be implemented cautiously to guarantee market stability.
In addition to enabling institutional sales, the FSC has recommended new guidelines to help bitcoin exchanges manage their digital assets. Crypto trading platforms will soon be able to transform user-generated fees into cash, which will help them cover operational costs, including payroll and taxes. However, before finalizing these transactions, we will establish a structured framework to prevent market manipulation and unexpected price swings.
South Korea has strictly regulated bitcoin transactions since 2017, limiting corporate access to digital assets. The planned policy reform reflects the increased demand for corporate involvement in digital asset markets. Internationally, numerous nations have already adopted institutional crypto trading, putting pressure on South Korea to update its approach.
Regulators also recognize the hazards connected with cryptocurrency trading, including price manipulation and unexpected increases following token launches. The FSC has asked exchanges to develop self-regulatory measures and open listing standards to fight market manipulation techniques such as “pump and dump” schemes.
To guarantee a smooth transition, South Korea’s financial regulators, notably the Financial Supervisory Service and the Korea Federation of Banks, will work together to create detailed trading standards. These guidelines will outline best practices for institutional cryptocurrency transactions while also clarifying the legal and financial duties of participating entities.
As South Korea prepares to implement these changes, industry experts expect growing institutional interest in digital assets. The action signifies a transition toward a more inclusive and structured cryptocurrency sector, bringing the country in line with global digital financial trends.
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