South Korea’s FSC Unveils Plan to Define Corporate Participation in Virtual Digital Asset Market 16722 Technology News

South Korea enforces 'Virtual Asset Protection Act' to safeguard investors. 2e1q3y

Written by Siddharth Suvarna | Updated: 13 February 2025 19:21 IST

South Korea’s FSC Unveils Plan to Define Corporate Participation in Virtual Digital Asset Market

Photo Credit: Pixabay/ Big_Heart 235w70

South Korea to allow charities and schools to sell crypto donations

Highlights

South Korea has observed a rise in demands for Web3 services
The country aims to be competitive in the emerging VDA sector
South Korean authorities are working on finalising crypto rules

ment

South Korea is collaborating with various internal authorities to develop its Web3 market. In a recent move, the Financial Services Commission (FSC) unveiled a roap to gradually integrate local corporations into the VDA market, which primarily consists of cryptocurrencies. Looking ahead, South Korea aims to assess the financial aspects of cryptocurrencies and foster sector growth under legal oversight.

In 2025, the country will pilot two trials: crypto-related sales transactions and VDA trading for investment and financial purposes, the FSC stated in its statement.

Details Outlined by the FSC

South Korea recently implemented the ‘Virtual Asset Protection Act' to strengthen investor safeguards. After deliberation, the Virtual Asset Committee concluded that corporations should have the opportunity to explore the VDA market under FSC oversight.

Austria’s BitPanda Secures FCA Approval in UK: All Details

Elaborating on the factors that resulted in this decision, the FCA noted, “major countries overseas are broadly allowing corporations to participate in the market and the market environment is changing as domestic companies are also seeing an increase in demand for new blockchain-related businesses. Accordingly, the demand to allow corporations to trade virtual assets has been continuously increasing in Korea.”

FSC's document claims that approximately 3,500 listed companies and corporations have ed themselves as professional investors under the Capital Market Act. As part of the roap, the country will start allowing select institutional investors to open real name trading s for VDA engagements. Eligible corporations will need to show a balance of between KRW 5 million (roughly Rs. 3 lakh) to KRW 10 million (roughly Rs. 6 lakh) in financial investment products, to qualify for the pilot programme.

“Professional investors under the Capital Market Act can already invest in derivative products with the greatest risk and volatility. These corporations have a high demand for blockchain-related businesses and investments,” the FSC said in its announcement post.

Crypto Discussion Paper will Clarify India’s Stance, Says RBI Governor

South Korea also plans to allow organisations like educational institutions and charities to sell donations they have received in crypto for financial gains in the market. Law enforcement agencies, designated donation organisations, universities, crypto exchanges, and school corporations have been listed by the FCA as eligible participants in these trials.

The agency further noted that the Virtual Asset Committee worked with 12 sub-committees and traditional finance institutions to propose this roap for corporations to engage with VDAs.

FSC to Form Task Force

In the coming months, the FSC said it will establish a crypto-focussed task force with like the Korea Federation of Banks, and the self-regulatory Digital Asset Exchange t Consultative Group (DAXA) to finalise the “Internal Control Standards” and “Selling/Trading Guidelines” to implement its prepared roap to onboard corporations onto the Web3 wagon.

The FSC has yet to announce a timeline for establishing the task force.

“In addition, it plans to further strengthen communication with the market, including virtual asset business operators and industry experts, to smooth corporate market participation according to the roap,” the agency noted.

Comments

For the latest reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Web3

Radhika Parashar

Email Radhika

Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at [email protected]. More