[NEWS] South Korea to gradually ease restrictions on cryptocurrency transactions by corporations

The Financial Services Commission (FSC) announced that it will gradually relax regulations on cryptocurrency (virtual currency) trading by corporations. Discussions will be accelerated and regulations will be relaxed in stages.

Currently, under the Specific Financial Information Act, only individuals who have completed verification using real-name accounts are allowed to trade cryptocurrency in Korea. Although the law does not include any provisions restricting the opening of accounts by corporations, the FSC has effectively imposed restrictions so far.

According to the announcement, the FSC will gradually allow corporations to open trading accounts through discussions at the Digital Assets Committee in the "2025 Major Business Promotion Plan." It appears that discussions will first proceed in the direction of allowing non-profit corporations to open trading accounts.

This move follows the "Cryptocurrency User Protection Act" that came into effect last year. In addition to defining cryptocurrency, this act requires that cryptocurrency be managed by banks and stored in cold wallets. The FSC plans to promote the issuance and distribution of cryptocurrency through a law called the "Cryptocurrency Two-Stage Act."

According to a report from Yonhap News Agency, the FSC plans to introduce a major shareholder eligibility screening system for cryptocurrency businesses through amendments to the Special Funds Act and add a social credit requirement to the screening requirements. In addition, the company plans to review screening standards for cryptocurrencies such as meme coins and strengthen investigations into unfair practices in order to protect cryptocurrency users.

FSC Secretary-General Kwon Dae-young said, "We need to discuss what the listing standards should be, what to do about stablecoins, and what the rules of conduct for cryptocurrency exchanges should be," adding, "We will work to align the cryptocurrency market with global regulations."

Reference: Yonhap News
Image: Shutterstock

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