- South Korea lifts crypto ban for companies.
- The removal of the ban follows a two-phase plan.
- The move coincides with the passage and enforcement of South Korea’s law to protect users of virtual assets.
The South Korean Financial Services Commission (FSC) has announced plans to phase out the ban that previously prevented companies from trading virtual assets.
This change marks a new chapter for the country’s crypto market after years of strict rules that barred institutional participation in cryptocurrency trading.
Those regulations, in place since around 2017, were originally intended to curb speculation, money laundering and market manipulation.
A phased approach to integration
The FSC’s strategy for bringing companies into the virtual asset market will be implemented in stages.
In the first half of 2025, entities such as law enforcement agencies, non-profit organizations, educational firms and universities will be permitted to sell cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
This initial step is primarily designed to allow these institutions to monetize holdings and to provide them with access to virtual asset exchanges for that purpose.
In the second half of 2025, a pilot program is planned that would allow roughly 3,500 listed companies and conglomerates, along with professional investors registered under South Korea’s Capital Markets Act, to both buy and sell digital currencies.
The pilot aims to introduce a higher level of professional investment into the crypto market, with the potential to stabilize and expand it.
South Korea’s Virtual Asset User Protection Act
The decision to lift the ban comes alongside the passage and enforcement of South Korea’s Virtual Asset User Protection Act, which establishes significant safeguards for users of digital assets.
This legal framework is part of a broader effort to ensure the market operates under strict oversight and to reduce the risks associated with virtual asset trading. Globally, there is a clear trend toward acceptance and integration of cryptocurrencies into conventional finance.
The FSC acknowledges this shift and notes that growing demand for blockchain-related investments and services requires adjustments to local market dynamics.
To support the transition, the FSC plans to form a task force that will include stakeholders such as the Financial Supervisory Service, the Korea Federation of Banks and the Digital Asset eXchange Alliance (DAXA).
That collaboration aims to develop a comprehensive regulatory framework, including internal control standards for corporate crypto trading.
Involving market participants like cryptocurrency exchanges and industry experts will be essential to crafting policies that are practical and effective.
The overall approach appears cautious yet forward-looking, seeking to balance innovation with investor protection in the rapidly evolving world of virtual assets.