The Financial Supervisory Commission (FSC) of South Korea announced on Wednesday plans to release comprehensive guidelines for institutional cryptocurrency investments in the third quarter. According to its plan, investment guidelines for listed companies and professional investors are expected to be published in the third quarter, while guidelines for non-profit organizations and cryptocurrency exchanges will be released earlier in April.
The FSC had announced in January this year that it would gradually lift the factual ban on institutional investors investing in cryptocurrencies. The regulatory body revealed last month that it plans to start by allowing charities and universities to sell their held cryptocurrencies in the second quarter.
This announcement regarding the upcoming detailed guidelines further solidifies South Korea’s shift in stance towards cryptocurrencies, moving away from strict opposition to exposure of crypto assets in traditional financial markets. Institutional participation may further drive the growth of the South Korean cryptocurrency market and significantly enhance its liquidity.
During Wednesday’s meeting, FSC Vice Chair Kim So-young stated that South Korea is accelerating the development of its domestic cryptocurrency market, acknowledging that the Trump administration in the United States has expedited global discussions on cryptocurrencies.
South Korea is one of the largest retail cryptocurrency markets in the world, primarily dominated by altcoins. According to a report by the Korea Economic Daily, as of the end of November 2024, approximately 15.6 million people in South Korea are engaged in cryptocurrency trading, accounting for around 30% of the national population.
Source: Related Reports: “Hashed Survey: One in Four Adults in Korea Own Cryptocurrency, More People Hold Positive Views”