[NEWS] South Korea announces lifting of ban on cryptocurrency trading for companies and non-profit organizations

On the 13th, the Financial Services Commission (FSC) of Korea announced that it would lift the ban on cryptocurrency (virtual currency) transactions for companies and non-profit organizations. This could accelerate the purchase of cryptocurrency by companies in Korea, which is becoming more active in other countries.

According to the announcement, non-profit organizations such as charities and universities will be allowed to open real-name accounts during the first half of the year, and the sale of cryptocurrency will be allowed. The plan is to then allow listed companies and institutional investors to buy and sell cryptocurrency in the second half of the year.

Last month, the FSC announced its intention to gradually relax regulations on cryptocurrency transactions. As part of this, discussions and adjustments were underway to allow companies and non-profit organizations to trade cryptocurrency.

In Korea, a law enacted in 2017 effectively prohibited companies and non-profit organizations from trading cryptocurrency. However, in Korea, there were growing calls for lifting the ban on companies and other organizations trading cryptocurrency, given the changes in the global environment surrounding cryptocurrency.

The background to the FSC lifting the ban on cryptocurrency transactions for companies and other entities is that the "Cryptocurrency User Protection Act" enacted last year has established a systemic foundation for user protection. Another major factor seems to be the changing market environment, with companies and other entities now trading cryptocurrency overseas and demand for new blockchain-related businesses increasing in Korea.

In addition, as this decision is expected to increase the participation of companies and non-profit organizations in the cryptocurrency market, the FSC also stated that it will strengthen complementary measures to accommodate this. Specifically, in addition to strengthening banks' verification of transaction purposes and source of funds to prevent money laundering, it will establish "buying and selling guidelines" that include public disclosure requirements for third-party custody of cryptocurrency, and ultimately review whether real-name accounts can be opened.

Reference: Announcement
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