South Korea continues to alter its regulatory landscape for cryptocurrencies, issuing a VASP license to Happy Block. This may suggest a policy shift allowing companies to use their balance sheets to purchase cryptocurrencies.
VASP License Approval
On January 21, 2025, South Korea's Financial Intelligence Unit, under the Financial Services Commission, issued a VASP license to Happy Block. It is the second such license in recent months, after the Waybridge exchange received its license in December 2024.
Implications for Corporate Investments
The approval of the VASP license for Happy Block marks a significant step toward the free operation of South Korean companies with cryptocurrency. Due to FSC guidelines, companies are largely barred from purchasing cryptocurrencies as banks cannot open corporate accounts related to crypto exchanges.
Gradual Regulatory Changes
Although the FSC is not yet ready for full deregulation, it has approved a gradual approach to reforms. The first step will be to allow public institutions to receive crypto donations before permitting private companies to operate in this area.
Thus, the granting of a VASP license to Happy Block marks a significant shift in South Korea's approach to cryptocurrency regulation. As the government explores ways to integrate digital assets into its financial system, it is crucial to monitor policy changes and their effects on corporations.
