The Financial Services Commission (FSC) of South Korea has put an end to speculation regarding its plans to unveil a framework for corporate cryptocurrency accounts by the end of this year.
Current Status of Corporate Cryptocurrency Accounts
Sources close to the issue, as reported by the Korea Economic Daily, had suggested that the FSC was crafting a phased strategy. This would begin with allowing cryptocurrency trading at universities and local governments starting in 2025, with future expansion potentially including corporations and financial institutions.
However, in a statement released on December 4, the FSC clarified that no final decisions have been made, and conversations are still ongoing. They urged caution against early reporting, highlighting that the discussions about implementing corporate real-name accounts for virtual currencies are still in the exploratory stages and have not been conclusively determined.
Challenges Facing Corporations
A new crypto committee, established by the FSC on November 6, is tasked with evaluating the possibility of loosening restrictions on institutional engagement within the cryptocurrency sector.
At present, South Korean corporations face significant hurdles in accessing cryptocurrency markets, particularly on exchanges that facilitate fiat-to-crypto transactions. Regulations require investors to hold real-name accounts with banks that collaborate with cryptocurrency exchanges, but only five exchanges currently have such partnerships. Moreover, banks typically shy away from allowing corporations to open these accounts due to concerns about compliance with Anti-Money Laundering regulations.
Market Dynamics and Recent Political Developments
As a result, individual investors primarily drive South Korea’s cryptocurrency market. Earlier this year, the Korean won gained recognition as one of the top fiat currencies in global cryptocurrency trading.
Recent political events further highlighted the importance of the Korean crypto market. President Yoon Suk Yeol’s brief declaration of martial law was swiftly overturned by the National Assembly and rescinded within just six hours. Interestingly, during that fleeting time frame, local cryptocurrency trading surged, achieving an impressive $35 billion in volume within a single day, as noted by Korean media outlets.
Source: Cointelegraph
