South Korea Tightens Cryptocurrency Regulations Ahead of Institutional Players Entering the Market

South Korea is tightening regulations on digital asset operations, preparing to allow institutional players into its cryptocurrency market by introducing new rules for non-commercial cryptocurrency sales and stricter listing standards for exchanges.

On May 20, the Financial Services Commission of South Korea (FSC) stated at its fourth meeting of the Virtual Assets Committee that it has completed work on new comprehensive measures. The updated rules, which will come into effect in June, will allow cryptocurrencies to be sold by both non-profit organizations and virtual asset exchanges, but under new standards.

Non-profit organizations must have at least five years of verified financial history to be eligible to receive and sell donations in virtual assets. Additionally, they will need to establish internal committees to review donations to assess the feasibility of each donation and liquidation strategy.