- South Korea plans to allow corporate firms to invest in cryptocurrency
- The goal is to strengthen cooperation between financial institutions and fintech firms
- South Korean crypto craze
South Korea plans to allow corporate firms to invest in cryptocurrency
Cryptocurrency has become a serious topic that people or even country leaders consider valuable. It has been a big year for Bitcoin and the industry because pro-crypto leaders have successfully led the world.
Now, when the US gets its pro-crypto President Donald Trump, with a huge goal to make America great again and exceptionally involved in cryptocurrency, Bitcoin and other digital assets are more valuable than before. Other countries try to keep up.
South Korea announced the plan to ease restrictions on crypto trading for corporates[1]. The country plans to issue real-name accounts to institutional investors gradually. South Korea should allow corporations to invest in cryptocurrency freely as the Financial Services Commission is slowly considering lifting restrictions.
Companies will soon be able to open real-name accounts on crypto exchanges, starting with non-profit organizations. Right now, only individual investors with verified real-name accounts can trade crypto. While no official rule stops businesses from investing, banks have been discouraged from giving real-name accounts to companies.
The Financial Services Commission (FSC) wants to change this[2]. They plan to discuss the issue with the Digital Asset Committee and introduce policies that help fintech companies grow.
The goal is to strengthen cooperation between financial institutions and fintech firms
This move is a massive game-changer for the whole industry. FSC also wants to improve how crypto exchanges operate, including rules on token listings and stablecoin management. In January, Jeong Eun-bo, chairman of the South Korea Exchange, mentioned that the exchange is considering approving a crypto spot ETF by 2025.
Reports also suggest that the FSC wants to allow companies to issue security tokens. At the 2025 Securities and Derivatives Market Opening Ceremony, Jeong said the exchange will study global examples of crypto ETFs and look into new opportunities in the capital market.
According to FSC Director Kwon Dae-young, there is a need to establish clear standards for such listings and rules that can help virtual asset exchanges, investors, and clients. People will be allowed to invest in digital currencies under that monitored framework.
After gradually lifting existing restrictions, FSC plans to implement new rules for digital asset trading. The main aim is to make the process secure and easy for businesses and embrace industry innovation.
South Korean crypto craze
It seems that South Koreans are prominent in crypto. About a third of the country's population invests in digital assets as of November 2024. Crypto is growing fast in the country, and with these new rules and the lifting of the restrictions, the interest might increase even more significantly.
The FSC wants to ensure only reliable businesses can participate in the crypto market. Their plan includes stricter checks on who can be shareholders and requiring companies to meet social credit rating standards.
Beyond crypto, the FSC is looking at more considerable financial reforms. One key change is raising the limit on how much stock a company can own in non-subsidiaries—from 5% to 15%. This would give businesses more flexibility and control over their investments.
Even as the global crypto market faces challenges, South Korea substantially supports digital assets more [3]. Recently, CoinPedia reported that under the Virtual Asset User Protection Act, the Bank of Korea revealed an interesting trend—over 30% of South Koreans are now involved in crypto trading.
