- Guidelines will have two phases
- First one is intended for non-profit organizations and exchanges, and will focus on establishing a foundational framework and AML concerns
- Second one is for public companies and professional investors, and should happen in Q3
South Korea is set to introduce new guidelines in the third quarter of 2025 to help with institutional investment in cryptocurrencies. The initiative is led by the Financial Services Commission (FSC) and the idea is to slowly lift the existing restrictions on institutional crypto investments. This could be quite the shift for South Korea and the country’s approach to digital assets.
The guidelines will be rolled out in two phases, with the first one aimed at non-profit organizations and exchanges. The target date is April, and the guidelines will focus on establishing a foundational framework and addressing anti-money laundering (AML) concerns.
The second phase is scheduled to come in Q3 and will introduce thorough instructions tailored for public companies and professional investors. This part is key in unlocking the potential of the virtual assets market within the corporate sector.
There’s already been talk in previous months on lifting the ban, and with today’s announcement, it seems the country is adamant about doing so.
When the decision officially takes place, it could have a big effect on the country and even the crypto industry itself. South Korea is a notable player in the global technology and financial sectors, and its progressive stance on crypto regulation may influence other countries to adopt similar approaches, contributing to the overall growth of the crypto industry.
From Crypto Ban to Potential Change
This dates back to 2017, when regulators imposed a ban on Initial Coin Offerings (ICOs) and prohibited institutional investors from directly holding or trading crypto assets. The decision was made in response to concerns about fraud, speculative trading, and money laundering that were abundant in the rapidly growing crypto market.
Its restrictions grew over the years, from 2018 when banks were prohibited from providing corporate accounts for crypto exchanges, to 2021 when the government introduced tax regulations for crypto. In addition, that year, new licensing requirements forced all South Korean crypto exchanges to register with the Financial Intelligence Unit (FIU) and obtain Information Security Management System (ISMS) certification.
As such, these new guidelines represent an important development in the integration of cryptocurrencies into mainstream finance – one from which South Korea can benefit immensely.
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