- South Korea will let institutions sell crypto donations from mid-2025.
- A phased roadmap will introduce corporate participation in digital assets.
- The regulator will enforce stricter measures to prevent market manipulation.
South Korea’s Financial Services Commission (FSC) will allow charities and universities to sell digital asset donations from mid-2025. Previously, institutions could not open accounts on cryptocurrency exchanges. This change marks a major shift in policy.
The FSC’s new plan includes a pilot program. In early 2025, 3,500 corporations and professional investors will be able to open real-name accounts. These accounts will let some institutional investors trade crypto assets. The government had restricted corporate crypto transactions since 2017 due to concerns about speculation and money laundering.
FSC Introduces a Phased Crypto Roadmap
To prevent market manipulation, the FSC has introduced a gradual approach. Only corporations with at least 10 billion won ($6.8 million) in financial investments will qualify to trade crypto.
Companies that are not professional investors will face extra scrutiny. The FSC will review them after the second stage of the pilot program. The regulator is also working on new guidelines. These rules will verify the purpose of crypto transactions and ensure funds are legitimate.
Crypto Exchanges Allowed to Sell Holdings
The FSC will let cryptocurrency exchanges sell part of their holdings. This includes user-generated fees. However, the regulator remains cautious about potential price manipulation.
Authorities are concerned about price spikes after token listings. These sudden surges are often linked to pump-and-dump schemes. In January 2024, the FSC reported its first major case of unfair crypto trading. Suspects allegedly manipulated token prices within 10 minutes, making massive profits.
To prevent this, the FSC may impose a minimum circulating supply for new tokens. The regulator has also urged exchanges to review listing standards and increase transparency.
Task Force to Oversee New Regulations
The FSC will create a task force to oversee the new regulations. It will include the Financial Supervisory Service, the Korea Federation of Banks, and the Digital Asset Exchange Alliance.
This group will ensure the smooth implementation of the corporate trading roadmap. South Korea is taking careful steps to regulate crypto while allowing institutions to participate. The next few years will determine the impact of these new policies.
