South Korean regulatory bodies have adopted a prudent stance on permitting corporate accounts for cryptocurrency trading, deciding instead to table the issue for future deliberation.
On the 15th of January, the Financial Services Commission (FSC) of South Korea convened their second Virtual Asset Committee meeting. The main topic of discussion was putting into action the recently enacted regulations aimed at safeguarding crypto investors, according to a local news outlet, Korea Times.
During the gathering, it’s said that South Korean authorities have hinted at a forthcoming decision on their policy review concerning the expected authorization of companies to invest in digital assets, which has been eagerly awaited.
Kim So-young, vice chairman of the Financial Services Commission (FSC), stated that the topic concerning corporate accounts, which was brought up earlier, has been thoroughly examined during a series of discussions held by 12 subcommittees and task forces.
Policy reviews on corporate crypto trading are “nearing completion”
In South Korea, there’s a growing excitement about the potential approval of corporations investing in cryptocurrency. It’s been speculated that the Financial Services Commission (FSC) is planning to gradually introduce this investment opportunity in 2025, by allowing the establishment of real-name corporate trading accounts.
Although South Korea hasn’t explicitly outlawed these corporate and institutional accounts, unofficially, regulators are said to be influencing banks to refrain from issuing them.
In my analysis, I anticipated that the Financial Services Commission (FSC) would address the matter during their second gathering of the Virtual Asset Committee – a body that convened for the first time in November 2024, as reported by The Korea Times.
Instead, corporate crypto accounts took a backseat as regulatory attention was primarily focused on other policy matters.
According to reports, Kim from FSC stated that they are almost done with the review process regarding corporations’ cryptocurrency trading accounts. He further mentioned that they plan to share the findings shortly and move forward swiftly with the next steps following the report.
Crypto investor protection law and stablecoin rules are on the agenda
At that gathering, the focus was squarely on the second stage of South Korea’s pioneering legislation for crypto investor security, set to become effective in July 2024. As a crypto investor, I found myself eagerly following these discussions.
In the second stage of this legislation, we’re focusing on filling in any missing rules regarding the creation, circulation, and disclosure of digital assets. This comes after the initial phase, which focused on protecting users by securing their deposits and prohibiting deceptive trading activities.
Kim announced that we’re moving forward with talks regarding the second part of the law. It requires a thorough and organized strategy involving businesses, markets, and consumers.
Additionally, it’s mentioned in the report that the committee intends to initiate conversations about creating a unique set of regulations specifically for stablecoin transactions and associated businesses.
The news emerges as the Financial Services Commission (FSC) reportedly arranges a meeting to discuss penalties against major local cryptocurrency exchange Upbit, accused of breaching Know Your Customer (KYC) procedures in over half a million potential cases in 2024, according to internet reports. The Upbit meeting is set for January 16th, as per online sources.
Read More
- RLC PREDICTION. RLC cryptocurrency
- OKB PREDICTION. OKB cryptocurrency
- CAKE PREDICTION. CAKE cryptocurrency
- TRB PREDICTION. TRB cryptocurrency
- POL PREDICTION. POL cryptocurrency
- XDC PREDICTION. XDC cryptocurrency
- FLOKI PREDICTION. FLOKI cryptocurrency
- ZEN PREDICTION. ZEN cryptocurrency
- TRAC PREDICTION. TRAC cryptocurrency
- SXP PREDICTION. SXP cryptocurrency
2025-01-15 11:59