South Korea to Allow Corporate Crypto Accounts in Three Phases

Highlights:

• South Korea will allow corporate crypto accounts in three phases to ensure market stability.
• Law enforcement agencies and nonprofits will get access to the corporate crypto accounts first followed by investment firms and listed companies.
• General corporations may join later but new laws on stablecoins and virtual asset businesses are still under review.

The Financial Services Commission of South Korea announced it plans to grant corporations the ability to open real-name bank accounts for crypto assets. The financial market stability will be achieved through a three-stage implementation process.

FSC will first extend access permissions to law enforcement agencies, non-profit organizations, and virtual asset exchange platforms. They must acquire bank accounts to convert their crypto assets to cash and handle their digital assets legally. The first stage of this initiative is projected to be completed by the second quarter of 2025.

A new era of crypto finance in Korea has been unveiled.
The FSC disclosed corporate account openings, with details for exchanges and institutional investors. 🧵https://t.co/AXshnBBaDa

— S🅾️PHIΞ (@crypto_sis) February 13, 2025

The National Tax Service together and the Korea Customs Service already operate real-name accounts. The agencies utilize the accounts to execute operations that involve stolen assets and tax default payments.

Under the new FSC policy, universities and non-profit organizations can access all privileges currently limited to government agencies for crypto transactions. Such institutions can establish real-name financial accounts to convert digital donation assets into cash. The FSC will maintain close oversight to validate transparent operations and prevent misuse.

Virtual asset exchanges will gain permission to establish corporate accounts starting in the middle of 2025. Virtual asset exchanges require specific bank accounts to monetize crypto assets they obtain via fees. Exchanges must utilize their corporate accounts to pay salaries, make tax payments, and cover operational expenses. Government agencies will establish specific rules regarding which digital assets can be traded along with their maximum allowed sale quantities.

Expansion to Professional Investment Firms and Listed Companies

The second phase of the plan will open crypto accounts to professional investment firms and publicly listed companies. The phase will start in the second half of 2025. Only companies registered as professional investors will qualify under the Capital Market Act. The firms will be able to trade digital assets and others under strict regulatory guidelines.

Companies must comply with new regulations, including the Foreign Exchange Transactions Act, to participate. The law governs cross-border transactions and applies to international virtual asset exchanges. Authorities will also establish anti-money laundering measures to prevent illicit financial activities. Each corporate account will undergo strict evaluation by banks and exchanges before approval.

The FSC’s phased approach aims to introduce corporate crypto investment gradually. The objective is to stop sudden market fluctuations and allow companies to explore digital asset opportunities. The final stage of implementation will only start once authorities assess market responses. The move comes days after South Korea announced plans to set up a permanent unit to counter cryptocurrency crimes.

Future Roadmap and Regulatory Considerations

FSC is also looking to expand corporate participation in the crypto market. However, regulatory developments will determine this move. Additional legislation will eventually be necessary to let general corporations open crypto accounts. Stablecoins and business activities related to virtual assets need an appropriate regulatory framework defined by the authorities.

FSC Vice Chairwoman Kim So-young said discussions on the next stage of virtual asset law are underway. Authorities are examining regulations for stablecoins and their business operators, as well as transaction monitoring. The National Assembly will also consider amendments related to token securities as proposed by the FSC.