According to the latest announcement by the Financial Services Commission, South Korea gradually allowed corporations to start crypto’s trade.
On 13 February, SFC released one Press release In which it designed a phased lift on a restriction, which stopped the institutions from participating in the virtual assets trading markets. The report said that South Korea was lifting its institutional crypto trading ban earlier this year.
In phase one of the program, the authorities will allow law enforcement agencies, non-profit organizations, school corporations and universities to sell bitcoins (BTCs) and Atherium (ETH). This will be to capitalize on those objectives, these institutions allowed to reach services on virtual asset exchanges in the first half of the year.
South Korea will then roll out a pilot program to buy and sell crypto for about 3,500 listed companies and corporations. This is expected to be live in the second half of the year and will bring digital asset trading for professional investors registered under the Capital Market Act of the country.
Crypto trading has been banned for corporations and other professional institutions since government sanctions in 2017. This step has been seen to address speculation, money laundering and manipulation in the market.
According to SFC, the enactment and enforcement of the country’s virtual asset user Protection Act has given significant protection to users.
In addition, there is a remarkable global trend that has allowed other countries to enter and participate in the digital asset markets. The regulator said that the demand for blockchain related investment and services means that the local market would have to be transferred.
FSC is planning to create a task force associated with the organizations concerned to issue a regulatory structure for internal control standards. Helping Crypto Trading Guidelines will help Financial Supervisory Services, Korea Federation of Banks and Digital Asset Exchange Alliance, or Daxa.
The FSC said that FSC said with exchanges and industry experts such as market participants.
