Mark Weaden
South Korea is moving toward lifting its de facto ban on institutional trading of cryptocurrencies, according to a report from Yonhap News Agency. The country’s top financial regulator, the Financial Services Commission (FSC), intends to gradually allow institutional investors to open accounts on crypto exchanges, starting with non-profit organizations.
Currently, only retail traders verified with their government names are allowed to trade crypto in South Korea, while institutions have been restricted due to advice from the FSC, which has urged banks to prevent institutions from opening accounts. However, the FSC now plans to collaborate with the Digital Asset Committee to establish a regulatory framework that could open the door for institutional crypto trading.
This move aligns with South Korean President Yoon Suk-yeol’s campaign promise to revitalize the local crypto sector. In addition to lifting restrictions on institutional trading, the government has put into place protections for virtual assets in South Korea. The FSC is also working on new regulations for stablecoins, crypto exchanges, and token listings, with plans to amend the Financial Information Act to introduce screening for major shareholders of virtual asset service providers.
