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South Korea is gearing up for a significant shift in its approach to cryptocurrency investments. The Financial Services Commission (FSC) has announced plans to allow corporations to invest in digital assets, signaling a major step forward for the country’s crypto industry. This move could unlock new opportunities for businesses to invest in South Korea.
New Rules for Corporate Investments
Currently, companies in South Korea face strict rules when it comes to investing in crypto, including limitations on opening real-name accounts. The FSC aims to change this by starting with non-profit organizations.
According to FSC Director Kwon Dae-young, there is a pressing need to establish clear listing standards and enforce rules of conduct for virtual asset exchanges. These groups will be allowed to invest in cryptocurrencies under a monitored framework.
Once this initial phase is complete, the FSC plans to introduce new rules for how digital assets are issued and traded. The goal is to make the process clear and secure for businesses while encouraging innovation.
Building Trust and Innovation
The FSC is also working to ensure that only trustworthy businesses can take part in the crypto market. Plans include checks on shareholder eligibility and requirements for social credit ratings. Additionally, the agency wants to set stricter rules for volatile cryptocurrencies, like meme coins, to protect investors.
Beyond crypto, the FSC is looking to make broader changes to the financial system. For example, it plans to raise the limit on how much stock companies can own in non-subsidiaries from 5% to 15%. This would give businesses more control and flexibility.
South Korea’s Growing Crypto Influence
While the global crypto market has faced challenges recently, South Korea’s decision shows a growing recognition of digital assets.
Earlier, CoinPedia reported that the Bank of Korea, established under the Virtual Asset User Protection Act, disclosed that more than 30% of South Korea’s population is now engaged in crypto trading.