South Korea has chosen to postpone the approval of corporate cryptocurrency trading accounts, citing the need for additional consultations and prioritizing other critical regulatory issues.
The Financial Services Commission (FSC) held its second Virtual Asset Committee meeting on January 15, with a focus on the implementation of crypto investor protection rules and the likely introduction of stablecoin regulations. However, after thorough review by subcommittees and task groups, the FSC has postponed reaching a final decision on corporate crypto accounts.
The policy review process for corporate accounts is almost complete, according to FSC Vice Chairman Kim So-young. “We will soon present the results and take the necessary next steps promptly,” Kim told me.
Although South Korea has not officially outlawed corporate cryptocurrency trading accounts, financial institutions have been advised to avoid granting such. According to reports, the FSC may authorize real-name corporate trading accounts by 2025, opening the way for regulated corporate transactions in digital assets.
The FSC also considered moving forward with the second phase of South Korea’s crypto investor protection rules, which seek to close legal gaps in asset issuance, distribution, and reporting. Launched in July 2024, the first phase concentrated on user protection, deposit safeguards, and combating unfair business practices.
The regulatory authority is currently investigating frameworks for overseeing stablecoin transactions and related activity. This initiative demonstrates the FSC’s commitment to providing a secure and transparent environment for cryptocurrency trading while also encouraging innovation in digital finance.
Among these advances, the FSC is addressing compliance challenges. The FSC is planning a conference to discuss potential disciplinary steps against Upbit, a major local exchange, for alleged violations of Know Your Customer (KYC) rules.
South Korea’s methodical approach demonstrates its commitment to balancing investor safety with the development of a sustainable cryptocurrency ecosystem. With key decisions on the horizon, 2025 might be a watershed moment for corporate cryptocurrency investments in the country.
