According to Cointelegraph, South Korean regulators are progressing with plans to enable cryptocurrency investments by institutional investors. The South Korean Financial Services Commission (FSC) has outlined a strategy to gradually introduce corporate investment in digital assets by permitting the issuance of real-name corporate trading accounts. This initiative is part of the FSC's 2025 work plan, which aims to enhance financial stability and foster financial innovation.
Despite the absence of legal barriers to issuing real-name accounts to corporations, local regulators have informally advised banks against such actions. The FSC plans to review the gradual allowance of corporate crypto investments through discussions with the Virtual Asset Committee, which convened its first meeting in November 2024. However, there is no specific timeline for these discussions, as the FSC is coordinating the timing and topics of the committee meetings. A source from the FSC's crypto division indicated that it is challenging to provide a definitive timeline or content details due to current market issues.
The recent reports contribute to the ongoing debate over South Korea's potential approval of corporate crypto investments. In December 2024, the FSC refuted claims that it planned to release a roadmap for corporate crypto accounts by the end of the year, stating that specific measures were still under consideration. Cointelegraph reached out to the FSC for comments on the latest developments but did not receive a response at the time of publication.
FSC Secretary-General Kwon Dae-young emphasized the need for South Korea's crypto frameworks to align with global regulations. He highlighted the importance of discussing listing standards, stablecoin management, and rules of conduct for virtual asset exchanges. Kwon stated that efforts would be made to synchronize with international regulations in the virtual asset market.
This news emerges as South Korea navigates a significant leadership crisis following President Yoon Suk Yeol's brief declaration of martial law in December 2024. On January 8, lawyers for the impeached president Yoon criticized attempts to detain him over the martial law imposition, while the acting leader expressed concerns about potential conflicts between law enforcement and presidential security personnel.
