South Korea postpones decision on corporate crypto investments

South Korean regulators took a cautious approach toward allowing corporate accounts for cryptocurrency trading, postponing any decision for further discussion.

On Jan. 15, South Korea’s Financial Services Commission (FSC) held the second Virtual Asset Committee meeting, focusing on the implementation of the country’s new crypto investor protection laws, the local news agency Korea Times reported.

At the meeting, South Korean regulators reportedly mentioned that the FSC is finalizing its policy review regarding the widely anticipated approval of corporate investment in digital assets

“The issue of allowing accounts for corporations, which was discussed previously, has undergone extensive review through 12 subcommittee and task force discussions,” FSC Vice Chairman Kim So-young said.

Policy reviews on corporate crypto trading are “nearing completion”

The community in South Korea has been anticipating approval of corporate crypto investments, with local reports suggesting that the FSC has been working to gradually roll out such investments in 2025 by allowing the issuance of real-name corporate trading accounts.

While South Korea has not formally banned such accounts for corporations and institutions, the regulators reportedly have de facto guided banks to not issue them.

FSC Vice Chairman Kim So-young at the second meeting of the Virtual Asset Committee on Jan. 15. Source: FSC

According to the Korea Times, many expected the FSC to discuss the issue during the second meeting of the Virtual Asset Committee, which held its first meeting in November 2024.

However, corporate crypto accounts were not prioritized, with regulators focusing on other policy issues.

FSC’s Kim reportedly mentioned that the policy review process on corporate crypto trading accounts is nearing completion. “We will report the results soon and proceed with the subsequent steps promptly,” he added.

Crypto investor protection law and stablecoin rules are on the agenda

At the meeting, the regulators focused on discussions regarding the second phase of South Korea’s first law on crypto investor protection, which entered into force in July 2024.

The law’s second phase aims to address regulatory gaps related to crypto asset issuance, distribution and disclosures, following the first phase’s user protection measures, such as safeguarding deposits and regulating unfair trading practices.

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“We are officially beginning discussions on the second phase of the law. A comprehensive and systematic approach encompassing businesses, markets and users is necessary,” Kim said.

The committee also plans to start a discussion on establishing a separate regulatory framework targeting stablecoin transactions and related businesses, the report noted.

The news comes amid the FSC reportedly planning a meeting to decide punitive measures for major local exchange Upbit, which was allegedly identified as a violator of at least 500,000 potential Know Your Customer breaches in 2024. According to online reports, the Upbit meeting is scheduled for Jan. 16.

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