- South Korea’s Financial Services Commission (FSC) plans to allow corporations to invest in virtual assets using real-name accounts, starting with non-profits.
- The move builds on the Virtual Asset User Protection Act, enacted in 2024 to stabilize the crypto market and protect investors.
- With over 30% of South Koreans investing in crypto, the country is aligning regulations with global standards to boost its digital asset market.
South Korea is turning the page on its strict crypto regulations. For the first time, the government is planning to allow companies to invest in cryptocurrencies, starting with non-profit organizations.
https://x.com/cryptothedoggy/status/1876956710524342767
This move, led by the Financial Services Commission (FSC), is a huge shift for a country where more than 30% of the population already trades digital assets.
Why This Matters
Until now, South Korean businesses were locked out of the crypto market. Even though there was no law against it, banks refused to issue the real-name accounts companies needed to invest. That meant while individuals could trade freely, corporations were stuck watching from the sidelines.
The FSC says it’s ready to change that. The plan starts with non-profits, letting them open these accounts and gradually expanding the access to other types of businesses.
“This is about catching up with the global market,” said Kwon Dae-young, an official at the FSC. “We’re building a framework to ensure fairness, trust, and stability for everyone involved.”
South Korea’s Crypto Craze
South Koreans are already big on crypto. As of November 2024, more than 15.59 million people—about a third of the country—were investing in digital assets. In just one month, 610,000 new investors joined the market, showing how fast crypto is growing here.
https://x.com/IvanOnTech/status/1235505842394365952
The government has also been easing up on taxes. A planned 20% tax on crypto gains over 2.5 million won (about $1,880 USD) was delayed in December, giving investors and businesses more time to prepare.
What’s Next?
The FSC isn’t stopping with corporate accounts. This move is part of a bigger effort to create smarter rules for the crypto industry. Officials are working on new policies to manage stablecoins, set listing standards for digital assets, and ensure crypto exchanges follow strict ethical guidelines.
These steps build on the success of the Virtual Asset User Protection Act, which came into effect in 2024. That law focused on protecting individual traders and making the market more secure. Now, the focus is shifting to include businesses and institutions.
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