South Korea’s Financial Services Commission (FSC) announced on Feb. 13 a gradual rollback of its institutional crypto trading ban, in place since 2017 to combat speculation and market manipulation.
First Half of 2024: Law enforcement agencies, non-profits, schools, and universities will be allowed to sell Bitcoin and Ethereum via virtual asset exchanges for cashing out purposes.
Second Half of 2024: A pilot program will allow 3,500 listed companies to buy and sell cryptocurrencies, expanding digital asset trading to professional investors under the Capital Market Act.
The FSC cited the Virtual Asset User Protection Act as a key factor in the decision, ensuring stronger investor protections.
A task force will be formed with the Financial Supervisory Service, Korea Federation of Banks, and Digital Asset eXchange Alliance (DAXA) to establish internal controls and trading regulations.
Industry experts and crypto exchanges will play a crucial role in shaping South Korea’s institutional crypto trading framework.
This move aligns with the global trend of corporate participation in digital asset investments and signals South Korea’s shift toward a regulated crypto market.
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