Making a significant policy change as the state looks to support the country’s blockchain industry, South Korea is set to unwind its restrictions on administrative crypto trading.
The country’s Financial Services Commission ( FSC ) plans to gradually grant institutions access to local crypto exchanges, starting with non-profit organizations, according to a translated report.
For years, banks instructions have limited institutional investing, even though no official restrictions exists. Now, just retail dealers in South Korea, verified through real-name balances, are allowed to participate in bitcoin investing.
However, the FSC and its Digital Asset Committee are expected to work together to gradually move out administrative access, opening the door for more institutional involvement in the market.
The action builds on the Virtual Asset User Protection Act, which was passed last year to strengthen investment protections and combat cruel trading techniques.
The rules established stringent requirements for exchanges to keep warm bag reserves, shop consumer funds in financial institutions, and provide insurance against potential losses.
The FSC plans to expand the government’s range, introducing new rules for cryptocurrencies, crypto markets, and key entries.
” We need to explore how to make naming specifications, what to do with cryptocurrencies, and how to make rules of conduct for virtual property markets”, FSC Secretary-General Kwon Dae-young told Yonhap. ” We may function to adhere to international laws in the online resource business.”
Through adjustments to the Special Financial Transactions Act, the FSC is preparing to roll out a program to evaluate the registration of big shareholders in digital asset businesses.
The act serves as South Korea’s main rules for upholding anti-money laundering and economic transparency laws.
By enforcing stricter standards for speculative assets like image coins, the FSC intends to increase self-regulation in the crypto industry.
Additionally, the organization intends to introduce investigative tools to look into and overcome unlawful trading practices, creating a safer environment for customers.
While these plans mark improvement, South Korea’s bitcoin reforms have faced major setbacks due to political upheaval.
In December 2024, now-impeached President Yoon Suk Yeol declared martial law amidst mounting conflicts, temporarily halting parliamentary interests.
The underrepresented pieces of legislation included the much-anticipated legalization of securities token offerings (STOs ) and the introduction of real-name corporate accounts.
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