- South Korea to allow corporations to convert crypto to fiat with real-name accounts.
- FSC’s plan includes phased access for law enforcement, nonprofits, and investment firms.
- New regulations ensure anti-money laundering compliance in corporate crypto transactions.
South Korea’s Financial Services Commission (FSC) has announced a policy shift that will allow corporations to create real-name bank accounts for converting crypto holdings back into regular fiat currencies.
Three-Phase Plan for Corporate Crypto Accounts
According to the new plan, the FSC intends to issue real-name virtual asset accounts to corporations in a three-stage process.
Initially, the policy will be available to law enforcement agencies, non-profit organizations, virtual asset exchanges, and other entities that need accounts to cash out crypto assets. This first phase is expected to be completed by the second quarter of 2025.
It’s worth noting, the FSC has already authorized government agencies like the National Tax Service and the Korea Customs Service to access such accounts since last November. These agencies can manage virtual asset transactions connected to legal activities, such as retrieving criminal proceeds or collecting unpaid taxes.
Related: South Korea Accelerates Crypto Regulations as U.S. Policies Shift
The second phase of the plan, scheduled to roll out later in 2025, will allow professional investment corporations, including listed companies and those registered as professional investors under the Capital Market Act, to participate in crypto investing and other related financial activities.
However, corporations participating in this stage must comply with newly developed regulations that monitor cross-border transactions, especially the Foreign Exchange Transactions Act, which deals with international virtual asset exchanges.
FSC Opts for Gradual Crypto Integration
The FSC’s approach is designed to avoid sudden disruptions in the market while promoting stable growth.
The first half of 2025 will center on law enforcement and nonprofit entities, followed by the inclusion of professional investors. This phased integration is meant to carefully balance the need for regulatory oversight with the aim to promote corporate participation in the developing digital asset market..
In addition, universities and non-profit organizations receiving cryptocurrency donations will also be able to set up accounts by the second quarter of 2025, further increasing access to virtual asset management.
Further Regulatory Discussions Underway
Kim So-young, Vice Chairwoman of the FSC, stated that the commission would continue to discuss the second stage of virtual asset regulation.
Related: South Korea Crypto Investments Surge: 30% of Population Now Owns Digital Assets
Despite earlier reports indicating an accelerated timeline, the FSC clarified that the details of the corporate crypto account rollout were still under review. Therefore, caution was urged as further discussions and regulatory measures are still being finalized to support this transition.
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