South Korea’s Financial Services Commission (FSC) has denied allegations of a plan for corporate cryptocurrency accounts by the end of the year. The statement comes amid speculation regarding staged plans to enable colleges and municipal governments to participate in cryptocurrency trading beginning in 2025, with corporations and financial institutions following suit.
The FSC noted in a statement on December 4 that they had not decided on any concrete measures. The regulator further stated, “We are still discussing the issue of corporate real-name accounts for virtual assets, and we have not finalized specific plans.” We suggest caution when reading speculative reports.
The FSC’s cautious stance is consistent with its policy regarding institutional involvement in bitcoin. Despite the flourishing cryptocurrency sector in South Korea, government laws restrict corporate participation, primarily driving it through retail investors. Banks now require real-name accounts for fiat-to-crypto transfers and often restrict corporate entities from opening such accounts to comply with Anti-Money Laundering (AML) regulations.
Despite these constraints, South Korea has become a major player in the global bitcoin market. The Korean won is one of the most popular fiat trading pairings, with market activity reaching record levels, such as $35 billion in a single day amid a recent political crisis.
As talks about corporate crypto accounts continue, the FSC’s cautious approach demonstrates a delicate balance between regulatory control and market innovation. While the retail-driven sector remains healthy, the possible entry of institutional investors may change South Korea’s place in the global cryptocurrency economy.
