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South Korea to release institutional crypto investment rules

South Korea’s Financial Services Commission (FSC) plans to release guidelines for institutional cryptocurrency investments by Q3 2025, signaling a shift in its regulatory stance.

Guidelines for non-profits and crypto exchanges will be available in April, while those for public companies and professional investors will follow later in Q3.

In January, the regulator announced plans to gradually lift the ban on institutional crypto investments, starting with universities and charities selling their crypto holdings.

FSC vice chairman Kim So-young said that the guidelines will cover trading, disclosure, and reporting standards. He also urged banks and crypto exchanges to strengthen anti-money laundering and cybersecurity measures.

Meanwhile, the government is developing the second phase of its crypto regulatory framework, focusing on stablecoins and crypto business regulations.

The FSC has not provided updates on local spot crypto ETFs, despite ongoing discussions.

As of November 2024, around 15.6 million South Koreans, or 30% of the population, participated in crypto trading.

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