South Korea to Gradually Allow Companies to Enter Cryptocurrency Market

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South Korea is taking a significant step toward integrating blockchain technology into its mainstream financial ecosystem. The country’s financial regulator, the Financial Services Commission (FSC), announced plans to gradually permit corporate participation in the cryptocurrency market starting in the second quarter of 2025. This phased approach aims to stimulate investment in blockchain ventures while maintaining regulatory oversight and financial stability.

The move marks a pivotal shift in South Korea's stance on digital assets, signaling growing institutional confidence in the long-term viability of cryptocurrencies as part of a diversified investment strategy.

Phased Access for Non-Financial Entities

Beginning in Q2 2025, select non-financial organizations—including universities and government agencies—will be allowed to open real-name bank accounts to sell cryptocurrency assets. This initial phase applies specifically to non-profit institutions and law enforcement bodies using digital assets for public-interest purposes.

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It’s important to note that these entities will only be permitted to liquidate existing crypto holdings, not engage in active trading or purchasing. This restriction reflects the FSC’s cautious approach, prioritizing transparency and anti-money laundering (AML) compliance over immediate market expansion.

Currently, South Korean banks are prohibited from opening real-name accounts for most corporate crypto activities due to concerns about money laundering and regulatory ambiguity. Only exchanges designated under the Special Financial Information Act can facilitate such transactions, and even then, only for individual investors.

Expansion to Listed Firms and Licensed Investors

In the second half of 2025, the FSC plans to extend real-name account access to approximately 3,500 listed companies and licensed professional investors. These entities will be able to both buy and sell digital assets through verified banking channels, marking a major milestone in corporate crypto adoption.

The FSC justifies this expansion by drawing a parallel with existing regulations: professional investors already have access to high-risk financial instruments like derivatives. Therefore, allowing them to trade cryptocurrencies for investment and financial purposes is seen as a logical next step.

“Given that professional investors are already permitted to invest in the most volatile derivative products, we will pilot real-name accounts for crypto trading with investment and financial objectives,” stated the FSC.

However, this does not equate to full liberalization. The policy remains limited in scope—general corporations outside the listed or licensed categories will not yet qualify, and crucially, financial institutions such as banks and securities firms are still barred from direct crypto trading or offering crypto-based financial products.

Regulatory Hurdles and Legislative Delays

A key factor delaying broader corporate access is the ongoing absence of comprehensive virtual asset legislation. While the FSC has introduced progressive policies, full legal clarity on ownership, taxation, custody, and investor protection remains pending.

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Kim So-young, Vice Chairperson of the FSC, emphasized that expanding access to all businesses will require time:

“Virtual asset legislation has not yet been finalized, so it will take longer before we can extend these privileges to general enterprises.”

Additionally, the FSC must conduct thorough risk assessments before permitting financial institutions to participate. One major obstacle is the requirement for financial firms to hold underlying virtual assets before launching products like crypto ETFs. Without clear custody frameworks and balance sheet treatment guidelines, such offerings remain off-limits.

Implications for Blockchain Investment and Market Growth

This incremental opening of the corporate gateway to crypto markets is expected to boost institutional demand for blockchain-related projects. By enabling universities, listed firms, and accredited investors to transact directly through regulated banking channels, South Korea is laying the groundwork for a more mature digital asset ecosystem.

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Moreover, the policy may encourage more companies to explore treasury diversification strategies involving digital assets—similar to early adopters in other jurisdictions.

Frequently Asked Questions (FAQ)

Q: Can any South Korean company buy cryptocurrency now?
A: No. As of 2025, only licensed professional investors and listed companies will gain limited access in the second half of the year. Most private firms still cannot open real-name accounts for crypto purchases.

Q: Are banks allowed to trade cryptocurrencies?
A: Not yet. Despite growing interest, South Korean banks and securities firms remain prohibited from buying, selling, or holding crypto assets directly due to unresolved regulatory and risk management issues.

Q: Will companies be able to launch crypto ETFs?
A: Not currently. Financial institutions cannot offer crypto-based ETFs because they must first legally hold virtual assets—something not permitted under present rules.

Q: What types of organizations can sell crypto starting in Q2 2025?
A: Non-profit organizations, universities, law enforcement agencies, and designated crypto exchanges may open real-name accounts to sell digital assets for public or operational purposes.

Q: Is South Korea moving toward full crypto legalization?
A: The country is progressing steadily but cautiously. The FSC is implementing practical access measures while awaiting final virtual asset legislation, which will determine long-term regulatory frameworks.

Q: How does South Korea’s approach compare globally?
A: South Korea’s strategy mirrors cautious adopters like Japan and Singapore—prioritizing investor protection and financial stability while fostering innovation through controlled experimentation.

The Road Ahead: Building Institutional Confidence

South Korea’s measured rollout reflects a broader global trend: regulators increasingly recognizing the value of blockchain technology while guarding against systemic risks. By focusing first on transparency, accountability, and institutional readiness, the FSC is building a foundation for sustainable growth.

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As legislative efforts advance and market infrastructure strengthens, further openings—including potential ETF approvals and expanded corporate treasury allocations—could follow in 2026 and beyond.

For investors and businesses alike, South Korea’s evolving stance underscores one clear message: digital assets are no longer fringe experiments but emerging pillars of modern finance—regulated, respected, and ready for responsible integration.

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