Key Points:

• South Korea plans to gradually allow corporations to trade cryptocurrencies.
• The Financial Services Commission (FSC) is working on issuing real-name accounts to institutional investors.
• New regulations aim to foster collaboration between fintech firms and financial groups.

South Korea’s Crypto Market Expands to Institutions
South Korea is poised to lift restrictions that currently limit corporate investment in cryptocurrencies, signaling a significant shift in the country’s regulatory landscape.

According to a report by Yonhap News Agency, the Financial Services Commission (FSC) is exploring a phased approach to enable institutional investors to trade digital assets.

Gradual Issuance of Real-Name Accounts
The FSC’s plan involves gradually issuing real-name accounts to institutional investors, starting with non-profit organizations.

This move will open the door for companies to invest in crypto markets, a privilege currently reserved for retail investors with verified real-name accounts.

Current Landscape and Planned Changes

• Existing Regulations: At present, South Korean crypto laws only permit retail investors to trade using verified accounts. While there is no formal ban on institutional trading, banks have been discouraged from issuing real-name accounts to corporations.
• Upcoming Shift: The FSC plans to change this policy, with discussions to be held through the Digital Asset Committee.

Fostering Fintech Growth
In addition to expanding institutional crypto access, the FSC aims to boost the fintech sector by promoting stronger ties between financial institutions and fintech companies. New measures are expected to streamline crypto exchange regulations, focusing on token listings and stablecoin management.

Crypto ETFs and Security Tokens on the Horizon
Earlier this year, Jeong Eun-bo, Chairman of the South Korea Exchange, hinted at potential developments in crypto investment products.

Speaking at the Securities and Derivatives Market Opening Ceremony 2025, Jeong stated the exchange would “benchmark overseas cases” and explore the approval of cryptocurrency spot ETFs by 2025. The FSC is also considering allowing companies to launch security token offerings.

Looking Ahead
South Korea’s evolving crypto framework signals a broader acceptance of digital assets in institutional finance. As the regulatory environment matures, the country is positioning itself to become a key player in the global crypto market.