South Korea’s leading financial regulator will allow charities and universities to sell digital assets, citing the 'growing demand' for institutional crypto trading.
New Rules for Charities and Universities
The Financial Services Commission announced that charities and universities will be permitted to sell cryptocurrency donations starting the second quarter. Additionally, South Korean crypto exchanges will be allowed to convert digital assets received as fees into cash to cover operating expenses. However, due to potential conflicts of interest from mass sales, the plan is to gradually implement these changes after setting a common 'Sales Guideline' among operators.
Corporate Crypto Regulation Adaptation
Under South Korea’s regulations, only verified retail traders with officially registered names can trade cryptocurrencies. The regulator has also directed banks to restrict corporations from opening exchange accounts. However, responding to growing demand for corporate transactions in virtual assets, plans are underway to initiate pilot tests in the latter half of the year, allowing companies to open accounts for investment purposes.
Engagement with Industry Participants
As a major crypto market, South Korea had restricted corporate involvement due to speculation and money laundering concerns. However, adapting regulations in line with global norms reflects a significant shift. The financial regulator intends to collaborate with key industry participants, such as the Financial Supervisory Service, the Korea Federation of Banks, and the Digital Asset eXchange Alliance, to develop internal guidelines and risk mitigation strategies.
South Korea’s easing of crypto rules and expansion of institutional participation reflect a global trend towards greater integration of virtual assets into traditional financial systems. The introduction of new regulations for charities and universities signals significant changes in the country's digital currency landscape.
