In a bid to ramp up its crypto-focused business efforts, South Korea is planning to allow corporations to open real-name crypto accounts in three phases. Initially, the government will allow law enforcement agencies, non-profits, and crypto exchanges to open accounts for cashing purposes. Gradually, the policy will expand beyond and include professional investors and general corporations.
South Korea’s Financial Services Commission (FSC) announced this development following the 3rd Virtual Asset Committee meeting on February 13.
For years, South Korea has banned corporate participation in crypto markets due to concerns over money laundering and market instability. Banks also restricted real-name accounts for businesses. However, the inception of laws like Virtual Asset User Protection Act has set an optimistic tone for institutional market involvement, both domestically and internationally.
According to local media reports, in the first phase, crypto accounts will be granted to law enforcement agencies, non-profits, and exchanges. Law enforcement agencies, such as the prosecution and the National Tax Service, have legal grounds to handle crypto assets through processes like confiscation of criminal proceeds. Non-profits designated as donation organizations will also gain access to corporate accounts by the second quarter of 2025 for fundraising and sponsorships. However, these organizations must establish internal controls for handling crypto assets.
Moreover, by the second quarter, crypto exchanges will be able to open corporate accounts to manage proprietary crypto assets needed for operational expenses. However, due to the potential for market manipulation, the FSC will introduce guidelines limiting the types and amounts of assets that can be sold.
In the second phase, professional investors, such as listed companies and registered corporations, will be allowed to invest in crypto. Strict anti-money laundering guidelines will be implemented, and banks and exchanges will carefully evaluate each corporation before opening accounts.
Lastly, a third phase will focus on general corporate access, pending additional legislation on crypto and foreign exchange taxation. The FSC plans to establish guidelines for both public and private sectors to support corporate investment in crypto.
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