South Korea Moves Towards Easing Institutional Crypto Trading Restrictions

The South Korean government is considering a gradual relaxation of restrictions on institutional cryptocurrency trading. The Financial Services Commission (FSC) is exploring a phased approach that would initially grant non-profit organizations access to real-name accounts on crypto exchanges.

Currently, South Korean law permits only retail investors with verified real-name accounts to engage in cryptocurrency trading. While there isn't an explicit ban on institutional investment, banks have been advised against issuing real-name accounts to corporations. The FSC aims to revise this policy and is planning to discuss the matter within the Digital Asset Committee.

Furthermore, the FSC intends to implement measures that foster the growth of fintech companies. This includes enhancing collaboration between financial institutions and fintech firms. The regulatory framework for cryptocurrency exchanges is also set to be refined, with a focus on token listings and the regulation of stablecoins.