Emre Yumlu 
South Korea to allow charities, universities, and crypto exchanges to sell assets amid corporate crypto trading demand.
South Korea’s financial regulator, the Financial Services Commission (FSC), has announced that it will begin allowing charities, universities, and crypto exchanges to sell certain cryptocurrency holdings in the first half of this year in response to growing demand for institutional crypto trading.
This follows an announcement last month that the FSC would allow institutional investors to trade cryptocurrencies in stages. Today, the FSC revealed that it will soon enable charities and universities to sell crypto assets received as donations starting in the second quarter.
Additionally, the regulator plans to permit South Korean crypto exchanges to sell crypto assets received as fees, converting them into cash to cover operational expenses such as payroll and taxes. However, due to concerns over potential conflicts of interest arising from mass sales by exchanges, these sales will be gradually allowed after a common “Sales Guideline” is established among operators.
South Korea’s Crypto Regulations and Increasing Corporate Participation
Under South Korea’s financial information use act, only retail traders who have been verified with their official government names are allowed to trade cryptocurrencies. The FSC had previously instructed banks to restrict institutions from opening accounts on exchanges.
The FSC stated that there is a growing demand for corporate transactions in virtual assets within the country, noting that major countries abroad are broadly accepting corporate participation in the crypto market. It also mentioned that local companies are experiencing increased demand for new blockchain-related business opportunities.
In the second half of this year, the regulator plans to launch pilot tests to allow about 3,500 listed companies and companies registered as professional investors to open real-name accounts for investment purposes.
Since late last year, the FSC has also allowed law enforcement agencies to set up accounts for liquidating crypto assets seized from illicit activities.
South Korea’s first crypto regulatory framework went into effect in July last year, focusing on the protection of crypto investors. The FSC has begun discussions to develop follow-up regulations and aims to draft the legislation in the second half of this year.
South Korea is home to one of the largest crypto markets in the world. Last month, the Korean crypto exchange Upbit ranked as the world’s fourth-largest centralized exchange by monthly exchange volume.
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