The South Korean Financial Services Commission (FSC) has announced the lifting of the ban on cryptocurrency sales by nonprofit organizations starting June 2025. This decision is significant for market liquidity and institutional participation in digital assets.
Overview of New Rules
In May 2025, the FSC finalized new regulations allowing nonprofits to sell cryptocurrency under strict conditions. This decision was announced in their fourth Virtual Asset Committee meeting. Effective June 2025, sales of cryptocurrency are permitted for assets listed on three major domestic exchanges.
Expected Impact on Liquidity
The new regulations may increase liquidity in South Korea's crypto market, allowing institutions to engage more actively. This marks an important step toward integrating digital assets into the broader financial landscape. Analysts speculate that this may positively influence trading of major cryptocurrencies like BTC and ETH.
Historical Policy Changes
Previously, South Korea restricted institutional sales of digital assets, focusing on exchange-owned assets. The recent regulatory easing opens doors for institutional assets in the crypto market. Experts indicate that this could attract institutional investors, leading to increased market capitalization.
The regulatory changes open new opportunities for nonprofits in cryptocurrency sales and may significantly impact the digital asset market in South Korea.
