South Korea has announced a three-phase plan to legalize cryptocurrency trading for corporate entities by 2025, marking a drastic shift in the country's approach to digital assets.
Phase 1: Initial Access to Limited People
In the first half of 2025, the Financial Services Commission (FSC) will allow certain entities to trade cryptocurrency. Since November 2024, agencies like the Prosecution Service and National Tax Service have been permitted to create crypto accounts for asset seizure related to crimes and tax debts. Non-profit organizations will be able to accept and convert cryptocurrency donations starting Q2 2025.
Stage 2: Introducing Access to Professional Investors
By late 2025, FSC intends to extend crypto trading privileges to professional investment entities. Publicly listed companies will be allowed to invest in digital assets provided they have strong anti-money laundering (AML) procedures in place. Approximately 3,500 certified investment institutions must meet AML standards and undergo assessments by banks and exchanges before participating in crypto markets.
Phase 3: General Corporations Moving Forward
The FSC remains cautious about the participation of general corporations in crypto trading. The Commission emphasizes the need to finalize comprehensive regulatory frameworks concerning stablecoins and cross-border transactions before expanding access.
South Korea's strategy reflects its goal to balance technological innovation with financial stability. The gradual inclusion of corporate entities in the crypto market aims to provide a safe and transparent environment for digital asset transactions.
