- South Korea reviews corporate crypto accounts, a decision expected by 2025.
- Strengthening crypto investor protection law with a focus on market transparency.
South Korea Financial Services Commission (FSC) has taken a cautious approach to enabling corporate cryptocurrency trading accounts, deferring a decision for further discussion. The stance was outlined during the second Virtual Asset Committee meeting on January 15, as reported by the Korea Times.
FSC Vice Chairman Kim So-young stated that significant progress has been made in reviewing policies regarding corporate investment in digital assets. “The issue of allowing accounts for corporations has undergone extensive review through 12 subcommittee and task force discussions,” Kim noted, adding that the review process is nearing completion with results to be announced soon.
Meanwhile, the anticipated approval of corporate crypto trading accounts has garnered attention, with plans to roll out real-name corporate trading accounts by 2025. Although such accounts are not formally banned, banks have reportedly been discouraged by regulators from issuing them.
Strengthening Crypto Investor Protection Laws
Discussions at the meeting focused on the second phase of South Korea’s crypto investor protection law, enacted in July 2024. This phase aims to address regulatory gaps in crypto asset issuance, distribution, and disclosures. The initial phase prioritized deposit safeguards and curbing unfair trading practices.
“We are officially beginning discussions on the second phase of the law,” Kim stated, emphasizing the need for a comprehensive approach covering businesses, markets, and users. Plans also include creating a regulatory framework for stablecoins, addressing global practices like reserve asset management and user redemption rights.
Meanwhile, the regulatory enforcement had a significant market impact. The FSC is set to address potential violations by Upbit. It is South Korea’s largest crypto exchange, accused of over 500,000 KYC breaches in 2024. With South Korea’s crypto market among the world’s largest, these regulatory measures aim to ensure transparency and investor protection.
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