South Korea Considers Lifting Ban on Crypto Trading Institutions

The South Korean government is planning to issue real-name trading accounts to institutions, promoting the development of the crypto market and building a sustainable legal framework.

Lifting the ban on crypto trading for institutions

According to Yonhap, in its "Key Action Plan 2025," the Financial Services Commission (FSC) plans to consider lifting the ban on crypto trading by domestic institutions.

Currently, South Korea's Financial Information Act (FIA) only allows individuals who authenticate their identity with a real-name bank account to trade crypto. Although the law does not formally prohibit institutions from participating, the FSC has previously requested that banks not issue identity-authenticated accounts to institutions.

The FSC said it will coordinate with the Digital Asset Commission to implement a roadmap for issuing crypto trading accounts to institutions. First, non-profit organizations will be given priority to participate.

This is part of President Yoon Suk-yeol's campaign pledge to promote the development of the digital asset sector in Korea and increase institutional participation in the crypto market.

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Tightening management and building a comprehensive legal framework

In addition to removing restrictions, the FSC is also establishing additional legal frameworks based on the Virtual Asset User Protection Act, which was officially approved on July 18, 2024. The next part of this law will focus on stablecoin management regulations, token listing procedures, and crypto exchange operating rules.

At the same time, the FSC also plans to amend the FIA ​​Act to apply a censorship system to major shareholders of digital asset service providers and add social credit criteria to ensure transparency. Review standards for risky tokens such as memecoin will also be improved, along with an upgrade of the fraud monitoring system.

Along with that, other reform measures such as supporting crypto investment funds, improving the IPO process, and expanding the participation of institutional investors in the capital market are also being implemented to promote the development of the financial ecosystem.

South Korea's lifting of the institutional crypto trading ban not only paves the way for institutional capital to flow into the domestic market, but also lays the foundation for the country to become the world's leading digital asset center. These strategic steps will both promote the development of the crypto market and ensure transparency and sustainability in the long term.