The Financial Services Commission (FSC) of South Korea announced on Wednesday its plan to release comprehensive guidelines for institutional cryptocurrency investment in the third quarter. According to the plan, investment guidelines aimed at listed companies and professional investors are expected to be published in the third quarter, while guidelines for non-profit organizations and cryptocurrency exchanges will be released earlier in April.
The FSC had announced in January of this year that it would gradually lift the factual ban on institutional investors investing in cryptocurrencies. The regulatory authority revealed last month that it plans to start by allowing charities and universities to sell their held cryptocurrencies in the second quarter.
This announcement regarding the upcoming detailed guidelines further consolidates South Korea’s shift in stance towards cryptocurrencies, moving away from a strict opposition to cryptocurrency exposure in traditional financial markets. Institutional participation could further drive the growth of South Korea’s cryptocurrency market and significantly enhance its liquidity.
At Wednesday’s meeting, FSC Vice Chairman Kim So-young stated that South Korea is accelerating the development of its domestic cryptocurrency market and acknowledged that the Trump administration in the United States has expedited global discussions on cryptocurrencies.
South Korea is one of the largest retail markets for cryptocurrencies globally, primarily dominated by altcoins. According to a report by the Korea Economic Daily, as of the end of November 2024, approximately 15.6 million people in South Korea are engaged in cryptocurrency trading, which is about 30% of the national population. Source
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