South Korea’s Financial Services Commission (SFC) has announced plans to lift its longstanding ban on institutional cryptocurrency trading, responding to increased global participation in the market. The regulator disclosed on Thursday that non-profit organizations, including charities, universities, school corporations, and law enforcement agencies, will be able to sell virtual assets in the first half of 2024. By the second half, listed companies and professional investors will also gain the ability to trade digital assets.
The restrictions, originally imposed in 2017, were aimed at curbing “overheated speculation” and mitigating money laundering risks. However, with the introduction of the Virtual Asset User Protection Act, the regulatory framework now includes robust user safeguards, prompting the government to reconsider its stance.
The SFC highlighted that the evolving global market landscape has made institutional crypto involvement more commonplace. “Major countries overseas are broadly allowing corporations to participate in the market, and the market environment is changing as domestic companies are also seeing an increase in demand for new blockchain-related businesses,” the commission said in its statement.
This policy shift is expected to pave the way for greater corporate involvement in South Korea’s digital asset industry, aligning the nation with broader international regulatory trends.