South Korea is planning to slowly let businesses start trading crypto. The SFC put out a press release on February 13 announcing a plan to gradually lift a ban that kept institutions from trading in virtual assets.
Early this year, there were rumors that South Korea was thinking about lifting its ban on institutional crypto trading.
In the first part of the program, law enforcement, non-profits, school corporations, and universities will be able to sell cryptocurrencies like Ethereum (ETH) and Bitcoin (BTC). This is for cashing out, and these groups will be able to use virtual asset exchanges’ services in the first half of the year.
Then, South Korea will start a pilot program for about 3,500 listed companies and corporations to buy and sell cryptocurrency. Professional investors who are registered under the country’s Capital Market Act will be able to trade digital assets when this goes live in the second half of the year.
Since the government put limits on crypto trading in 2017, corporations and other professional groups have not been able to do it. This move was meant to stop speculation, money laundering, and changes in the market.
With the goal of putting out a regulatory framework for internal control standards, the FSC plans to put together a task force with related organizations.
The Financial Supervisory Service, the Korea Federation of Banks, and the Digital Asset eXchange Alliance (DAXA) will all help make the rules for crypto trading.
FSC said that working together with exchanges and industry experts is also an important part of the plan for companies to get into the virtual asset market.
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