The Financial Services Commission of South Korea (FSC) has just announced plans to allow charities and universities to sell donations in cryptocurrency from the second half of 2025. This is seen as an important step to promote crypto acceptance in the country.
“Real Name” Crypto Account Pilot
In addition, #FSC will also implement a pilot program allowing 3,500 businesses and professional investors to open crypto accounts using real names in the first half of 2025.
This is the first time South Korea allows institutions to open accounts on crypto exchanges, a move expected to enhance transparency and reduce money laundering risks.
The pilot phase will focus on institutional investors capable of accepting risks before expanding to other organizations.
Open but Cautious Policy
South Korea has restricted crypto trading to institutions since 2017 to minimize speculation and prevent money laundering. However, with the boom in the cryptocurrency market, the FSC has decided to relax restrictions to support the development of the digital industry.
The FSC will allow exchanges to sell a portion of the crypto holdings, including transaction fees generated by users.
At the same time, trading guidelines will be applied to verify the purpose of transactions and the source of funds to prevent money laundering.
Dealing with Price Volatility Risks
Despite opening the market, the FSC remains concerned about strong price volatility when new tokens are listed. To mitigate this risk, the FSC will:
Require transparency in the token listing process.
Propose applying a minimum circulating supply to reduce price volatility when new tokens are listed.
Call for self-regulation efforts from the crypto industry to avoid pump and dump phenomena.
Positive Signals for the Crypto Market
This move marks a major turning point in South Korea's cryptocurrency policy, helping to increase legitimacy and support the sustainable development of the market #crypto .
South Korea will also establish a task force including the Financial Supervisory Service, the Korean Bank Federation, and the Digital Asset Exchange Alliance to implement trading guidelines and carry out the crypto market roadmap.
Risk Warning
Investing in cryptocurrency always carries high risks and can lead to asset loss. Readers should thoroughly research information and consider risks before making investment decisions.