South Korea’s regulatory industry for cryptocurrencies continues to evolve, with authorities taking a cautious approach to corporate investments in digital assets.
On Wednesday 15 January, the Financial Services Commission (FSC) Hosted Its second virtual asset committee meeting, where it discussed progress on new crypto investor protection laws.
While the agenda touched on various regulatory topics, there was the much-anticipated decision on allowing corporate accounts for cryptocurrency trading. adjourned For more review.
Delay in decision on corporate crypto investments
During the meeting, the FSC emphasized its ongoing efforts to improve related policies Corporate crypto trading accounts. Although South Korea has not formally banned such accounts, banks have reportedly been discouraged from issuing them due to “regulatory uncertainties”.
Notably, this delay of corporate crypto trading accounts comes as the FSC continues to finalize its policy framework for corporate crypto accounts, which has come under extensive scrutiny in recent months.
According to FSC Vice Chairman Kim So-young, the issue has been the focus of 12 subcommittee and task force discussions. According to the report, the FSC is expected to complete its review soon, with Vice Chairman Kim saying, “We will report the results soon and proceed with next steps immediately.”
While the community in South Korea eagerly awaits clarity on corporate investments, regulators have so far avoided it. Prioritizing the matterFocusing instead on broader policy issues including investor protection and regulatory oversight.
Regulatory developments and future steps
Additionally, the discussion at the meeting centered around the second phase of South Korea’s Crypto Investor Protection Law, which became effective in July 2024.
While the first phase focuses on the protection of user deposits and Addressing unfair business practicesThe second phase aims to close regulatory gaps related to crypto asset issuance, distribution, and disclosure.
Regulators have emphasized the importance of a comprehensive approach that understands the needs of businesses, markets and consumers. In addition, the committee is planning to search for different Regulatory framework Specifically targeting stablecoin transactions and related businesses.
The move reflects the growing prominence of stablecoins in the global financial ecosystem and the need to address their challenges and risks within South Korea’s regulatory framework. It is worth noting that the delay in addressing corporate crypto accounts has left the community waiting for a clear direction.
Meanwhile, given Kim’s statement on the soon-to-be-completed review, it is likely that there could be a gradual rollout of corporate trading accounts in the near term, with real-name account issuance becoming a key part of the framework. is
Such a move could pave the way for increased institutional participation in South Korea’s digital currency market, which continues to grow. Despite the regulatory hurdles.
Featured image created with DALL-E, chart from TradingView
