South Korean regulators are reportedly advancing discussions on the approval of cryptocurrency investments by corporate entities, amidst the country’s current leadership turmoil. Sources indicate that the South Korean Financial Services Commission (FSC) plans to gradually introduce corporate investment in digital assets. This will involve the issuance of real-name corporate trading accounts, potentially marking a significant policy shift.
The FSC revealed these plans as part of its 2025 work agenda, aimed at enhancing financial stability and fostering financial innovation in the sector. While there are no explicit legal barriers preventing the issuance of real-name accounts to corporations, regulators have largely discouraged banks from doing so until now.
The move towards permitting corporate crypto investments is set to be carefully reviewed. Discussions, spearheaded by the Virtual Asset Committee, have been underway since their first meeting in November 2024. However, specific timelines or detailed steps for this initiative remain unclear.
“There are numerous market challenges we need to address. Thus, coordinating the timing and focus of discussions is crucial,” an FSC crypto division source mentioned, indicating the complexity and sensitivity involved.
This development stirs fresh controversy over South Korea’s stance on corporate cryptocurrency investments. Just last month, the FSC dismissed reports suggesting it would unveil a corporate crypto account roadmap by the year’s end, citing the need for more definitive measures.
In parallel discussions, FSC Secretary-General Kwon Dae-young emphasized the necessity for South Korea’s crypto regulations to align with international standards. “We need to establish listing standards, address stablecoins, and devise conduct rules for virtual asset exchanges,” he stated, underscoring a commitment to integrate with global regulatory frameworks.
These discussions occur as South Korea navigates a significant leadership crisis. The country faces political upheaval following President Yoon Suk Yeol’s brief imposition of martial law in December 2024. Legal representatives for the impeached president have opposed efforts to detain him, raising concerns about potential conflicts between law enforcement and presidential security forces.
This scenario highlights the intricate interplay between regulatory shifts and political dynamics in shaping South Korea’s approach to digital asset investments.
