South Korea’s Financial Services Commission (FSC) has announced that companies will soon be able to invest in virtual assets like cryptocurrencies. Starting this year, this change will happen step by step, making it easier for businesses to participate in the growing digital asset market.
Under the new framework, corporations will be permitted to issue real-name accounts on cryptocurrency exchanges gradually, as reported by local media.
Currently, only individuals with real-name verified accounts under the Special Money Act can invest in crypto. While the law doesn’t ban corporate accounts, banks haven’t been issuing them due to previous guidance from the FSC. Now, the FSC is working with the Virtual Asset Committee to make a clear plan for companies to get real-name accounts, starting with nonprofit organizations.
The FSC also plans to roll out the “Virtual Asset Phase 2 Act,” which will set new rules for how digital assets are issued and traded. FSC Secretary General Kwon Dae-young explained, “We need to discuss how to create listing standards, how to create stablecoins, and how to create rules of conduct for virtual asset exchanges.”
On top of this, the FSC is boosting protections for investors. The agency is tightening rules around meme coins and bringing in advanced tools to catch unfair trading practices. Major players in the crypto market will face stricter checks to ensure they meet social credit standards.
Aside from crypto, the FSC is also shaking things up for fintech companies. Financial holding firms will now be allowed to own up to 15% of fintech companies, up from the current 5%. Fintech subsidiaries will also gain more freedom to work with other financial companies. These changes aim to encourage innovation and collaboration in the finance sector.
Other plans include improving old-age insurance, like offering new ways to use death benefits for retirement income and extending coverage limits for indemnity insurance to age 110. Even credit card companies are getting a makeover, with plans to allow people-to-people transactions and rent payments via credit cards.
Also Read: Bhutan’s Gelephu City Adopts Crypto for Strategic Reserves
