South Korea crypto regulation is entering a new phase. The country’s Financial Services Commission (FSC) has officially lifted a six-year ban on corporate sales of digital assets. The restriction, originally implemented in December 2017, aimed to curb unchecked speculation in the crypto market.
With this policy change, local non-profit organizations and registered crypto exchanges in South Korea can now sell digital assets — but under strict conditions.
New Rules for Exchanges and Non-Profits
According to the Virtual Assets Committee of the FSC, organizations can only sell tokens if they meet regulatory standards. Registered virtual asset operators are now permitted to liquidate assets solely for operational cost coverage.
However, exchanges must adhere to several limits:
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Only the top 20 cryptocurrencies by market cap (on five major local exchanges) are eligible for sale
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Exchanges must not sell tokens on their own platforms to avoid conflicts of interest
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Sales must be pre-approved by the Board of Directors
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Daily sales volumes will be strictly capped
These measures aim to limit market disruption while allowing institutions to access much-needed liquidity.
South Korea Crypto Regulation Still Cautious on Custody
Earlier in 2024, the FSC considered allowing corporations to hold digital assets on their balance sheets. However, the agency later walked back the idea, stating that more research and risk assessment were needed.
In the meantime, nonprofits are now allowed to sell crypto donations, provided they meet the new compliance rules.
“The regulation prioritizes transparency, accountability, and consumer protection,” said an FSC spokesperson.
Tighter Listing Rules Also in Effect
In parallel, the FSC has also announced stricter rules for token listings on crypto exchanges. Only verified digital assets will be approved for trading, preventing newly launched or unvetted tokens from entering South Korea’s regulated marketplaces.
This step complements the broader crypto regulation strategy, which now balances access and oversight.
