According to a report by Yonhap News on January 8, the Financial Services Commission (FSC) has unveiled plans to allow corporate investment in crypto, starting this year.
Opening Doors to Institutional Participation
The FSC is reportedly developing a strategy to permit corporations to invest in crypto assets, a move that could reshape South Korea’s crypto landscape. Currently, regulations restrict the issuance of real-name accounts to corporations, effectively limiting institutional participation in the market. These accounts are crucial for crypto asset investments but have so far been available only to retail investors due to regulatory guidance to banks.
The new plan aims to address these limitations gradually, starting with non-profit organizations before expanding to other corporate entities.
Building a Stable and Regulated Market
This initiative follows South Korea’s Virtual Asset User Protection Act, introduced in 2024 to safeguard retail investors and enhance market stability. The FSC is now entering the second phase of its regulatory framework, focusing on:
- Stablecoins: Establishing guidelines to manage their use and circulation.
- Listing Standards: Creating transparent and consistent rules for listing crypto assets on exchanges.
- Rules of Conduct for Exchanges: Implementing policies to ensure fair practices in the crypto asset ecosystem.
FSC Director Kwon Dae-young emphasized the importance of aligning with global standards, stating:
“We need to discuss how to create listing standards, what to do with stablecoins, and how to create rules of conduct for virtual asset exchanges. We will work to align with global regulations in the virtual asset market.”
Crypto Adoption on the Rise in South Korea
The timing of this announcement reflects South Korea’s growing crypto adoption. As of November, over 30% of the population—15.59 million individuals—were actively investing in digital assets, marking a significant increase of 610,000 new investors in just one month.
Additionally, the government postponed the implementation of a 20% tax on crypto asset income exceeding 2.5 million won in December, signaling its intent to create a more favorable environment for crypto investors.