South Korea’s Financial Services Commission (FSC) has postponed its decision on whether to permit corporate investments in cryptocurrencies until 2025. This delay extends the ban implemented in December 2017, which prohibits institutions from holding, investing in, or purchasing virtual assets.
Background:
Since 2017, South Korean regulations have restricted corporate entities from engaging in cryptocurrency investments. The FSC had been reviewing plans to allow non-profit organizations, such as government ministries, public institutions, and universities, to open real-name accounts for virtual asset investments as an initial step toward broader corporate participation.
Current Status:
The FSC has deferred its decision, citing the need for further deliberation. Officials plan to hold meetings of the Virtual Asset Committee in January 2025 to discuss the potential lifting of the ban and to establish a comprehensive framework for corporate crypto investments.
Implications:
- For Corporations: The delay means that corporate entities in South Korea remain unable to invest in cryptocurrencies, potentially limiting their participation in the growing digital asset market.
- For the Crypto Market: South Korea’s crypto market continues to be predominantly driven by retail investors. The postponement may slow the market’s maturation and the development of institutional-grade infrastructure.
Future Outlook:
The FSC’s upcoming meetings in January 2025 are expected to address key issues, including the establishment of listing standards, regulations for stablecoins, and rules of conduct for virtual asset exchanges. These discussions aim to align South Korea’s crypto regulations with global standards and to create a more structured environment for potential corporate participation in the future
