South Korea is preparing for a substantial shift in its cryptocurrency investment approach. The Financial Services Commission (FSC) announced plans to allow corporations to invest in digital assets.
New Rules for Corporate Investments
Currently, companies in South Korea face strict rules when investing in crypto, including limitations on opening real-name accounts. The FSC aims to change this, starting with non-profit organizations. According to FSC Director Kwon Dae-young, there is a pressing need to establish clear listing standards and enforce rules of conduct for virtual asset exchanges. These groups will be allowed to invest in cryptocurrencies under a monitored framework.
Building Trust and Innovation
The FSC is also working to ensure that only trustworthy businesses can take part in the crypto market. Plans include checks on shareholder eligibility and requirements for social credit ratings. Additionally, the agency wants to set stricter rules for volatile cryptocurrencies, like meme coins, to protect investors. Beyond crypto, the FSC is looking to make broader changes to the financial system, such as raising the limit on stock ownership in non-subsidiaries from 5% to 15%.
South Korea’s Growing Crypto Influence
While the global crypto market has faced challenges recently, South Korea’s decision shows a growing recognition of digital assets. It was previously reported that more than 30% of South Korea’s population is engaged in crypto trading under the Virtual Asset User Protection Act.
South Korea’s regulatory initiatives in cryptocurrency could significantly alter how companies approach digital assets, creating more secure conditions for investment and innovation.
