The South Korean government has allowed corporate institutions to participate in the cryptocurrency market.
The Financial Services Commission has confirmed a step-by-step approach to ensuring financial stability and investor protection.
Law enforcement agencies will be the first to use real-name accounts to sell confiscated crypto assets.
South Korea plans phased corporate access
The FSC has presented a step-by-step plan for companies to access digital asset markets. Real-name accounts for sales purposes will be available to government agencies starting in the first half of 2024. This system will allow institutions to access crypto assets under the supervision of regulatory authorities.
It is planned that law enforcement agencies will become the first users of this system when they need to sell confiscated cryptocurrency assets. The National Tax Service and the Korean Customs Service participate in this system.
University institutions and charities will receive permission to exchange their donations in cryptocurrency for standard currency in the second quarter of this period.
Crypto Exchanges will Have Access to Cash Conversion
The authorities have approved cryptocurrency exchange operations, in which commissions are converted into bank funds. The reform allows businesses to convert their commissions into money to pay salaries to employees and fulfill tax obligations.
To prevent situations involving large-scale transactional conflicts, the FSC will develop special sales recommendations. The financial authorities will check the conversion procedures in accordance with the current financial legislation.
Institutional investors will join in the second half of the year
South Korea will introduce a pilot program for institutional investors in the second half of 2024. Under this program, selected corporations will be able to open trading accounts in real names to make crypto investments.
To make this transition happen, FSC has established partnerships with more than 3,500 authorized companies. The authorities prefer existing businesses that have experience working with high-risk financial products.
New rules for cross-border transactions
All corporate institutions that carry out international cryptocurrency transfers must adhere to strict FSC regulatory standards. International trading activities will fall under the jurisdiction of the Law on Foreign Exchange Transactions.
Government agencies will create systems that will allow tracking international transactions and reporting. The Government has taken measures to curb money laundering and other criminal financial transactions.
The adopted rules protect investors and ensure compliance with fair market standards.
The South Korean government has made important policy changes by allowing financial institutions to participate in crypto trading. The gradual implementation strategy makes it possible to regulate corporations' access to digital asset transactions.
Do you think this step will make South Korea a leading country in the field of institutional crypto trading?