South Korea is progressing towards establishing a complete regulatory framework for crypto, with follow-up legislation expected to be completed in 2025. The latest South Korean regulators’ move continues its attempt to keep pace with the global community as regards crypto regulations.
South Korea Scale Process for Crypto Bill
This decision was reached by the nation’s Financial Services Commission (FSC) during a meeting held on January 15. As per reports from local media, the commission has outlined specific areas the legislation would address, providing further clarity in the space.
During the meeting, the main topics included making new crypto exchange listings more transparent. The group discussed requiring crypto companies to follow the same disclosure rules as traditional financial firms.
As the world of cryptocurrency grows, different countries create rules to clarify regulations and protect investors. South Korea, for instance, introduced its first crypto laws in July 2024 after a draft bill was approved in May 2023.
South Korea Prioritize Investor Protection
Regulators seek feedback from important groups, including crypto service providers and users, to create effective laws. The Financial Services Commission (FSC) focuses on protecting investors. This is clear from its careful stance on new financial products, such as spot Bitcoin ETFs, and its rules for crypto trading by institutions.
Meanwhile, the commission failed to decide on whether to allow companies to hold real-name accounts for crypto trading.
Although South Korea hasn’t outrightly prohibited corporate cryptocurrency accounts, banks have been advised against offering such services. However, there are signs that the Financial Services Commission (FSC) might start to approve corporate trading accounts incrementally by 2025.
South Korea’s Explosive Crypto Growth
Interestingly, South Korea has one of the largest crypto markets in the world. A previous report by TheCoinRise shows that over 30% of its population holds crypto investments.
The number of crypto investors soared to almost 16 million as of November 2024. From July to November 2024, there was a significant surge in the value of South Korea’s cryptocurrency market.
The market capitalization saw an almost twofold increase, escalating from 58 trillion won, approximately $44 billion, to 102.6 trillion won, around $78 billion.
The average amount held by South Korean investors in digital assets reached 6.58 million, indicating an increasing trust in cryptocurrencies as a viable, long-term investment option. Also, another report shows that South Korea’s retail trading for cryptocurrencies surged to an impressive $18 billion within 24 hours.
