South Korea prepares to end its long-standing prohibition against corporate cryptocurrency trading with plans detailed by Financial Services Commission on February 13. The Financial Services Commission developed a step-by-step plan that enables different organizations to enter the digital asset market through specific stages.

The ban relief will start by letting eligible law enforcement units and nonprofit groups trade cryptocurrencies. Law enforcement agencies and other approved organizations can sell Bitcoin and Ethereum as the first part of new rules. Organizations can legally approach cryptocurrency exchanges through virtual asset exchange services beginning in the first half of 2024 during this first stage of relaxation.

South Korea Expands Crypto Access

South Korea will introduce a test phase for regulated 3500 listed businesses and corporations to trade crypto assets. South Korea intends to start its digital asset trading program for registered Capital Market Act investors during the last part of 2019. The move happens because blockchain-based investment and digital financial products attract more customers.

South Korea first banned corporate crypto trading in 2017 because market manipulation troubled them along with money laundering possible usage. Current investor safety measures gained momentum through the adoption of the Virtual Asset User Protection Act which standardized digital asset management for South Korea.

According to FSC data global market movements have made South Korea join countries that now permit business participation in cryptocurrency trades. South Korea needs new rules for blockchain-based finance because more businesses want these services for their investments.

Regulatory Framework for Corporate Crypto Trading

The FSC will create a new task force that brings together main financial organizations such as the Financial Supervisory Service, the Korea Federation of Banks, and DAXA to make the shift to cryptocurrency trading run smoothly. The team will build both operational management and complete trading guidelines for business crypto activities.

The FSC needs market players including crypto exchanges and experts to develop new rules successfully. Stakeholder participation helps shape quality rules that make the virtual asset market safer for everyone.

South Korea moves closer to full crypto trading following its gradual phase-in of lifting the institutional trading ban. More companies will begin trading cryptocurrencies when new laws take effect and will transform South Korea’s financial market.