The Financial Services Commission (FSC) of South Korea has denied claims that it will finalize a roadmap for corporate crypto accounts by the end of 2024.
The FSC dispelled the report after it said it has worked out a phased plan for corporate cryptocurrency trading, starting with universities and local governments in 2025 and then with corporations and financial institutions.
FSC told CNBC in a statement on Dec. 4 that no finalized decisions had been made, and discussions around corporate real-name accounts for the virtual assets are ongoing.
“The issue of corporate real name virtual assets accounts is to be further discussed, and specific measures have not yet been finalized.” And for that reason, we request the reader be careful in reporting,” the FSC said.
This is in keeping with the FSC’s reluctance to participate in the institutional crypto space. In September, the commission formed a dedicated crypto committee that met for the first time on Nov. 6 to discuss possible regulatory changes that would loosen the rules around institutions participating in the sector.
South Korea’s Crypto Market Thrives Despite Corporate Account Restrictions
South Korea mandates that investors use real-name accounts at banks tied up with cryptocurrency exchanges. While that is the case, only five exchanges in the country have nailed down such partnerships, and banks do not allow corporations to open accounts as required by Anti-Money Laundering (AML) regulations.
This means that the South Korean crypto market has primarily been fueled by retail investors who have pushed the Korean won to be ranked the second-largest fiat trading pair worldwide for cryptocurrencies in 2024.
This week has been a brief political crisis that underscored the scale of South Korea’s crypto trading activity. Within six hours, Yoon Suk Yeol reversed that decision with the announcement of martial law, which the National Assembly ruled unconstitutional.
Local media analysis shows that during the short period, South Korea’s crypto market saw almost $35 billion in 24-hour trading volume. South Korea has been the main driver of the global cryptocurrency economy, as this figure beats Indonesia’s whole crypto trading volume from 2024 to October.
However, as discussions around corporate crypto accounts continue, the FSC’s cautious posture suggests that the institutional presence in South Korea’s crypto market may be waning.
Although the market has been growing steadily with its increasing retail dominance and sizeable trading footprint, it remains a notable player in the evolving global cryptocurrency landscape.
