South Korea's Financial Services Commission (FSC) announced plans to gradually permit corporate involvement in the cryptocurrency market starting Q2 2024. This landmark decision aims to stimulate blockchain investment demand while maintaining regulatory safeguards.
Key Policy Changes
Phase 1 (Q2 2024):
- Non-profit organizations and law enforcement agencies can open bank-verified accounts
- Approved entities (including universities and crypto exchanges) may sell—but not trade—digital assets
Phase 2 (H2 2024):
- 3,500 listed companies and licensed professional investors gain trading access
- Trial implementation of investment-purpose verified accounts
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Important Restrictions Remain
Sector Exclusions:
- Banks and securities firms prohibited from crypto transactions
- Financial institutions cannot sell crypto ETFs (must hold assets first)
Account Controls:
- Current anti-money laundering rules prevent corporate crypto accounts
- Transactions require specially designated banking partners
Regulatory Context
FSC Vice Chairman Kim So-young emphasized: "Virtual asset legislation remains incomplete—expanding access for general businesses will require more time." The commission must first evaluate risks for financial sector participation.
Core Policy Objectives
- Boost blockchain investment
- Prevent speculative trading risks
- Maintain financial system stability
Industry Implications
This measured approach:
- Creates new institutional investment channels
- Positions South Korea as a regulated crypto hub
- Encourages responsible blockchain adoption
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Frequently Asked Questions
Q: Can any company trade crypto after Q2?
A: No—only approved entities (non-profits, listed firms, professional investors) gain access initially.
Q: Will banks start offering crypto services?
A: Not yet. Financial institutions remain restricted from direct crypto transactions.
Q: When might full liberalization occur?
A: The FSC hasn't set a timeline, citing incomplete virtual asset legislation.
Q: How does this affect retail investors?
A: Current individual trading rules remain unchanged.