South Korea’s financial regulatory body is set to introduce explicit guidelines for institutional cryptocurrency investments, with a phased implementation commencing in April.
The Financial Services Commission of South Korea is progressing with initiatives to permit institutional investors to enter the cryptocurrency market. Vice Chairman Kim So-young announced that the government is formulating a “two-phase regulatory framework for crypto” that will go beyond current user protection measures.
During a meeting with local industry professionals on March 12, Kim disclosed that the strategy will also encompass regulations for stablecoins and a legal framework for tokenized securities. He emphasized that authorities are “accelerating efforts to align with international regulatory trends,” following previous initiatives aimed at globalizing cryptocurrencies.
In February, the FSC laid out a roadmap for corporate engagement in the crypto sector, intending to progressively open up the market. Kim emphasized that corporate involvement in cryptocurrency is “about evolving practices, not merely legislative change,” advocating for the adoption of best practices to foster a robust market.
A dedicated task force will be responsible for drafting comprehensive guidelines, with varying timelines for different participants. Kim indicated that non-profits and crypto exchanges would receive their guidelines by April, while public companies and professional investors can expect theirs by the third quarter.
Earlier in March, the Financial Intelligence Unit announced plans to establish a joint response team aimed at addressing anti-money laundering (AML) crimes, particularly those related to cryptocurrencies, in collaboration with the Financial Supervisory Service and various financial institutions. Authorities will also issue alerts to certain industry players identified as particularly vulnerable to AML offenses, based on media reports and requests from the sector.