South Korea’s Financial Services Commission (FSC) has announced a significant policy shift, allowing institutions to sell digital asset donations and expanding banking services for cryptocurrency firms.
Under the new regulations, charities and universities will be permitted to sell their crypto donations starting in the second half of 2025. This marks a departure from previous restrictions that prevented institutions from opening accounts on cryptocurrency exchanges.
In a phased rollout, the FSC will initiate a pilot program in the first half of 2025, granting 3,500 corporations and professional investors the ability to open “real-name” accounts. These investors will later be allowed to sell their digital assets as part of a broader regulatory shift. The FSC stated in its February 13 announcement:
“In the second half of the year, a pilot test will be conducted for accounts for investment and financial purposes for some institutional investors with risk-taking capabilities.”
Since 2017, the South Korean government has heavily restricted corporate virtual asset transactions to curb speculation and mitigate money laundering risks. The new measures signal a more open approach to digital assets and institutional participation in the crypto market.
Additionally, the FSC plans to allow cryptocurrency exchanges to sell their digital assets, including those accumulated through user-generated fees. This move will enhance liquidity and integrate crypto-related businesses into South Korea’s financial landscape.
Meanwhile, Jung Eun-bo, chairman of the Korea Exchange, emphasized the need for South Korea to introduce cryptocurrency ETFs to stay competitive in global finance. He pointed out that South Korea is the third-largest cryptocurrency trading market but risks falling behind if ETF approvals are delayed. Unlike South Korea, the U.S. has launched futures and spot Bitcoin ETFs. Jung believes launching crypto ETFs domestically could create new opportunities for the financial sector and align South Korea with global trends.
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