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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Jan 08, 2025 11:38 UTC
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South Korea to Allow Corporate Firms to Invest in Crypto: What’s Next?
FSC’s new policy allows businesses to participate in digital asset investments legally.
FSC proposes raising stock ownership limits for companies from 5% to 15%.
Over 30% of South Koreans actively trade cryptocurrencies, indicating significant market growth.
South Korea is preparing for a big shift in its approach to cryptocurrency. The Financial Services Commission (FSC) has announced plans to let corporations invest in digital assets. This decision could create new opportunities for businesses and give the country’s crypto industry a significant boost.
New Rules for Corporate Investments
Right now, companies in South Korea face strict rules on cryptocurrency investments, including challenges in opening real-name accounts. To change this, the FSC plans to start by allowing non-profit organizations to invest in digital assets under a regulated framework.
FSC Director Kwon Dae-young highlighted the importance of clear standards for listing cryptocurrencies and enforcing rules for virtual asset exchanges. This initial phase will help create a safer and more structured environment for investments.
Building a Safer Crypto Market
The FSC is also working on broader rules for issuing and trading digital assets. The goal is to make the process more transparent and secure while supporting innovation in the market.
To protect investors, the FSC plans to limit market participation to trustworthy companies. This includes introducing shareholder eligibility checks, requiring social credit ratings, and setting stricter guidelines for risky assets like meme coins.
Beyond cryptocurrency, the FSC is looking to make other financial reforms. One key proposal is raising the limit on how much stock companies can own in non-subsidiaries, increasing it from 5% to 15%. This change aims to give businesses more flexibility and control.
South Korea’s Growing Crypto Influence
South Korea’s decision to embrace corporate crypto investments shows its growing recognition of digital assets. While the global market faces challenges, the country is positioning itself as a leader in innovation.
Earlier, CoinPedia reported that the Bank of Korea, established under the Virtual Asset User Protection Act, disclosed that more than 30% of South Korea’s population is now engaged in crypto trading.
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By opening its doors to corporate crypto investments, South Korea is setting a precedent that could inspire other nations to follow suit.
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