South Korea to Lift Ban on Institutional Crypto Trading
In a significant policy shift, South Korea’s Financial Services Commission (SFC) has announced plans to lift a longstanding ban that has restricted institutions from trading cryptocurrencies. This decision comes in light of the recent surge in global engagement with the cryptocurrency market, which has shown no signs of slowing down. The SFC revealed these intentions in a press release on Thursday.
Starting in the first half of the year, a variety of non-profit organizations—including charities, educational institutions like universities and schools, and law enforcement agencies—will be permitted to sell their virtual assets. Following this, by the second half of the year, publicly listed companies and professional investors will gain the green light to buy and sell cryptocurrencies, marking a notable shift in the regulatory landscape.
Historically, corporations and financial institutions in South Korea have faced restrictions on trading virtual assets due to government regulations introduced in 2017. At that time, these measures were enacted to combat “overheated speculation” in the crypto market and to address pressing concerns related to money laundering. However, with the impending enforcement of the Virtual Asset User Protection Act, a foundational framework for user protection is being established, as noted by the regulator in its official statement.
The SFC emphasized that as major economies around the world begin to embrace corporate participation in the cryptocurrency market, the domestic market environment is also evolving. The statement highlighted an increasing demand among local companies for blockchain-related business opportunities, reflecting a broader trend in the global financial landscape.
