Regulators in South Korea have decided to take a cautious stance on corporate involvement in cryptocurrency trading.
The Financial Services Commission (FSC) addressed the issue during its second Virtual Asset Committee meeting on January 15.
This gathering focused on implementing the country’s updated crypto laws designed to protect investors.
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The FSC has been reviewing whether to allow companies to open real-name accounts for crypto trading, a decision that has sparked interest.
Vice Chairman Kim So-young noted:
The issue of allowing accounts for corporations, which was discussed previously, has undergone extensive review through 12 subcommittee and task force discussions.
Although local reports suggested the FSC might make a decision soon, corporate accounts were not a priority at this meeting. Instead, the committee focused on a second phase of South Korea’s crypto laws.
This phase will address gaps in regulation, including rules for crypto issuance, distribution, and disclosures. It follows the first phase, which focuses on protecting individual investors by regulating unfair trading and ensuring deposit security.
While South Korea has not completely banned corporate crypto accounts, banks have reportedly been guided against providing these services. Despite this, there are indications that the FSC may introduce a gradual approval process for corporate trading accounts by 2025.
Meanwhile, Singapore recently restricted Polymarket, a cryptocurrency-based prediction market, under gambling laws. Why? Read the full story.
