South Korea is set to end its ban on institutions trading crypto, which could be a potential game changer for the country’s crypto industry. This was announced by South Korea’s Financial Services Commission (FSC), the top financial regulator in the country.
As of now, only individual traders in South Korea, verified with their real name accounts, are allowed to trade cryptocurrencies. Although no strict laws bar institutions from trading, the FSC has refused banks to allow opening accounts on crypto exchanges.
The FSC now plans to amend this rule, collaborating with the Digital Asset Committee to allow institutional investors to trade in phases. Non-profit organizations will be the first groups allowed.
South Korea Looks to Modernize the Digital Asset Space
During a speech, the Korea Exchange Chairman, Jeong Eun-bo mentioned the trading platform’s intention to “explore” spot ETF approvals in 2025. At the Securities and Derivatives Market Opening Ceremony 2025, he stated that the exchange would
“benchmark overseas cases for new businesses such as cryptocurrency ETFs and explore new areas in the capital market.”
The FSC is also planning on allowing companies to launch security token offerings. Last year, it came out with the Virtual Asset Investor Protection Act which aims to protect those investing in cryptocurrencies.
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