South Korea to lift crypto trading ban on corporations

South Korea plans to gradually authorize companies to start exchanging the crypto, according to the last announcement of the financial services committee.

On February 13, the SFC published a press release in which he described a progressive elevator on a ban which prohibited institutions from participating in the market for virtual asset exchanges. Reports that South Korea was thinking about an elevator of its ban on trading of institutional cryptography emerged at the start of this year.

In the first phase of the program, the authorities will authorize law enforcement organizations, non -profit organizations, school companies and universities to sell crypto such as Bitcoin (BTC) and Ethereum (Ethn). It will be to collect ends, these entities authorized to access services on virtual asset exchanges in the first half.

South Korea will then deploy a pilot program for the purchase and sale of crypto for around 3,500 listed companies and companies. This should be put online in the second half and will bring digital asset trading to professional investors recorded under the country’s capital market law.

The ban on crypto trade for companies and other professional entities has been in place since government restrictions in 2017. This decision sought to treat speculation, money laundering and market manipulation.

According to the SFC, the promulgation and application of the User Protection Act in virtual assets in the country have set up key protections for users.

The global trend has also seen that other countries allow companies to enter and participate in the digital asset market. The demand for investment and blockchain services also means that the local market must change, noted the regulator.

The FSC plans to form a working group involving related organizations, with a view to publishing a regulatory framework for internal control standards. The financial supervision service, Korea Federation of Digital and Digital Asset Exchange Alliance, or Daxa, or Daxa.

Collaboration with market players such as exchanges and industry experts is also crucial for the roadmap targeting the corporate foray into the virtual asset market, noted FSC.