South Korea’s Financial Services Commission Unveils a Three-Phase Plan for Corporate Crypto Trading
South Korea’s Financial Services Commission (FSC) has developed a well-structured three-phase approach to corporate crypto trading. The phased strategy will introduce businesses into the digital asset environment, while achieving regulatory compliance and financial sustainability.
Phase 1: Initial Engagement for Certain Users
The FSC lately announced their plans about enabling limited access for law enforcement and non-profit organizations to access virtual asset exchanges and trading.
Since November 2024, the authorities have made it open for the National Tax Service and Korea Customs to have crypto accounts specifically for asset confiscation and tax enforcement. By Q2 2025, non-profit organizations will also gain access to manage crypto donations without any access restrictions as long as they implement appropriate internal controls within their organization.
In addition, the virtual asset exchanges will now be allowed to convert their trading fees in fiat currency. However, they will have limitations on selling assets since it may be considered market manipulation.
Phase 2: Market Entry for Professional Investment Firms
The second phase will allow professional investment firms, including public listed companies and certified investment entities, to participate in crypto trading. The access will be available in the second half of 2025, after which the firms will need very tight compliance with anti-money laundering guidelines along with very thorough bank and exchange screening prior to engaging in buying and selling of digital assets.
Phase 3: Corporate Expansion Under Review
The third phase, which would extend the possibility of cryptocurrency trading to all corporations, is still being explored by the FSC. Additional regulations pertaining to stablecoin monitoring and foreign exchange should first be put in place prior to permitting the broader participation of corporations.
FSC Vice Chairwoman Kim So-young stated that the government is committed to extending regulation over the cryptocurrency sphere. Among the priorities under such regulations is stablecoin and security token offering-related, for which amendments to legislation would be sought to facilitate the adoption of such by all companies completely.
Without any doubt, South Korea has approached the issue of corporate crypto access in a very structured manner: cautious but progressive regulations intermingling innovation with regulatory safety.
