- South Korea postpones concluding whether to lift the ban on corporate crypto investment to 2025.
- The Financial Services Commission officials are going to hold a Virtual Asset Committee in January 2025.
South Korea emerged to be one of the largest crypto markets across the world, having a majority of the traders from the country. It’s not new for the country to make headlines several times for updates related to the crypto industry. As per the latest news from local agency Naver News, Financial Services Commission officials decided to postpone whether to lift the ban on corporate crypto investment to next year.
The South Korean Financial Services Commission is reviewing a plan to allow the issuance of real-name accounts to non-profit organizations initially. Once they lift the ban and allow the issuance, Central government ministries, local governments, public institutions, and universities will be able to access virtual asset investment.
However, non-profit organizations must wait till the new year to know whether the Commission lifts the ban on crypto investment. Even if a decision is finalized, the review of additional government departments might be delayed due to the ongoing impeachment of the country’s President Han Duck-soo.
South Korea Banned Corporate Crypto Investment in 2017
South Korea’s Office for Government Policy Coordination banned corporate virtual asset investment in December 2017. For the past 7 years, several organizations haven’t been able to invest in virtual assets. Several departments of the ministry such as the Ministry of Strategy and Finance, the Ministry of Justice, the Financial Services Commission, and the Ministry of Science and ICT banned institutions from holding, investing, and purchasing virtual currencies.
Based on the news report, Financial Services Commission officials stated that they are discussing the issuance of corporate accounts and will reveal their decision as soon as they come to a conclusion. The report also highlighted that a couple of meetings of the Virtual Asset Committee will be held in January 2025 on this issue to come to a conclusion.
South Korea has always shown its cautious stance on crypto despite being one of the largest crypto markets in the world. It recently imposed sanctions on North Korean hackers and postponed crypto gains tax implementation to 2027. With major countries like the US are discussing ways to adopt digital currencies such as Bitcoin for strategic reserves, South Korea may lag behind, restricting institutional investment in crypto.
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