South Korea is set to relax its restrictions on institutional crypto trading, making a major policy shift as the government looks to support the nation’s crypto sector.
The country’s Financial Services Commission (FSC) plans to gradually grant institutions access to local crypto exchanges, starting with non-profit organizations, according to a translated Yonhap News Agency report.
For years, banking guidelines have limited institutional trading, even though no official ban exists. Currently, only retail traders in South Korea, verified through real-name accounts, are allowed to participate in crypto trading.
The FSC, however, is set to work with its Digital Asset Committee to roll out institutional access in phases, clearing the way for wider institutional involvement in the market.
The initiative builds on the Virtual Asset User Protection Act, enacted last year to improve investor safeguards and crack down on unfair trading practices.
The law introduced strict measures such as requiring exchanges to store user funds in financial institutions, maintain cold wallet reserves, and obtain insurance against potential losses.
The FSC plans to expand the law’s scope, introducing new regulations for stablecoins, crypto exchanges, and token listings.
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