South Korea is revising its crypto trading laws, signaling a shift towards institutional inclusion and global alignment.
Institutional Crypto Access on the Horizon
The Financial Services Commission (FSC) is planning phased changes to allow institutional investors to trade cryptocurrencies. Current restrictions limit crypto trading to verified retail investors, excluding institutional players due to banking limitations.
Phased Regulatory Overhaul
The FSC will collaborate with the Digital Asset Committee to implement reforms. Initial access is expected for non-profits, signaling a gradual opening of the market.
“We need to discuss how to create listing standards, what to do with stablecoins, and how to create rules of conduct for virtual asset exchanges. We will work to align with global regulations in the virtual asset market.”
Strengthened Legal Framework
As part of its Virtual Asset User Protection Act, South Korea plans to introduce guidelines for crypto listings, stablecoins, and operational conduct for exchanges. Revisions to the Special Financial Transactions Act will include eligibility checks for crypto exchange shareholders, incorporating social credit evaluations.
Pushing for Crypto ETFs
South Korea is also advancing discussions on crypto exchange-traded funds (ETFs). These instruments, though popular globally, have yet to gain regulatory approval in the country. Advocates argue that crypto ETFs can bring dynamism to South Korea’s financial markets.
Aligning with Global Standards
The FSC’s initiatives aim to position South Korea as a competitive player in the global digital asset market, ensuring compliance with international crypto regulations.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
