South Korea has again regressed in deciding on corporate cryptocurrency trading accounts, leaving it to further discussion. The FSC mentioned the continuous assessment during the second VA meeting held on January 15 during the Virtual Asset Committee session.
FSC Focuses on Investor Protection Laws
The FSC held the second Virtual Asset Committee to decide on issues regarding the safeguarding of the nation’s cryptocurrency investors, the Times reported. These laws started in July of 2024 and this one concerns virtual currency activities, in addition to playing the part of a shield for investors.
During the meeting, FSC Vice Chairman Kim So-young suggested that the agency’s policy review on the acceptance of corporate accounts for cryptocurrency is nearly done. Kim stated, ‘‘We will announce the outcomes shortly and move on to the following actions immediately.” While the FSC is close to becoming fully functional the group still has not prioritized corporate crypto accounts because the organization is preoccupied with bigger picture concerns.
Corporate Crypto Accounts Under Review
The possibility of getting the corporate trading accounts approved has been quite expected within South Korea. There are preliminary local papers indicating that the FSC eyes a corporate crypto trading permission in 2025 via real-name corporate accounts.
Although they have not been banned officially, reports have emerged that regulators have advised banks against extending such accounts to customers. These measures correspond with the long-term approaches of the FSC to gradually let companies invest in cryptocurrencies without jeopardizing financial security.
Regulators stressed, for instance, that the matter has been looked at through various subcommittee and task force discussions during the committee meeting.
New Regulatory Frameworks in the Pipeline
The committee also looked at the second part of South Korea’s crypto investor protection law. This phase aims to address the specific regulatory deficiencies of crypto asset offering, distribution, and disclosure. The first phase mainly focused on user protection with regard to deposits and protection against unfair trading.
When Kim explained further, “We are now mandated to start the talks formally on the second round of the law.” Thus, businesses, markets, and users have to be introduced to a comprehensive and systematic approach.”
Furthermore, to adopt the appropriate rules and regulation criteria for processing transactions in stablecoins, the FSC has plans to create a unique regulatory policy to support this currency type. These steps taken hope to be looking into the sustenance of market integrity besides protecting the user in the dynamic environment for a new type of asset.
Upcoming Developments and Enforcement Actions
The FSC’s regulatory works are not limited to the consideration of policies. The agency is said to be planning to respond to alleged non-compliance of the significant local exchange Upbit. One of the sessions planned for January 16 is whether to take action against the exchange for not following the Know Your Customer (KYC) rules in 2024.
This is a very broad attempt at regulation which shows that South Korea is determined to create a safe haven for investors willing to deal in cryptocurrencies while at the same time weighing the advantages and disadvantages of corporate adoption of cryptocurrencies.
