The post South Korea Ends 7-Year Crypto Investment Ban, Boosting Institutional Access and Market Potential appeared on BitcoinEthereumNews.com.

South Korea has lifted a seven-year ban on institutional crypto investment, allowing stock-listed firms to trade virtual assets. The policy change will roll out gradually, starting in 2025, with regulations ensuring stability, transparency, and investor confidence. South Korea has officially lifted its seven-year ban on institutional cryptocurrency investment, marking a major shift in the country’s approach to digital assets. The Financial Services Commission (FSC), the chief financial regulator, made the announcement following increasing global demand for regulated crypto investment opportunities. The decision, which comes after years of cautious restrictions, will now allow companies listed on South Korea’s stock exchange to trade virtual assets, including cryptocurrencies. The rollout will begin on a pilot basis in the second half of this year, creating a structured path for institutional participation. In December 2017, the FSC initially imposed the ban, citing market volatility and price instability. Although the prohibition was not an outright legal restriction, regulators strongly advised banks against allowing institutional entities to open trading accounts on cryptocurrency exchanges. South Korea Plans Gradual 2025 Kick-off The shift will not happen overnight. South Korea plans to implement the policy change in multiple stages to ensure stability and compliance. During the initial phase, non-profit organizations and schools will be permitted to sell donated cryptocurrency holdings starting in the first half of 2025. As the policy expands, listed corporations and professional investors will gain access to regulated digital assets. The introduction of corporate crypto trading is expected to mature the market, as institutional investors typically bring stability compared to retail traders, who often drive market volatility. The FSC has outlined a structured plan to introduce regulations gradually. The commission will collaborate with the Digital Asset Committee to establish guidelines for listing standards and stablecoin regulations and conduct rules for virtual asset exchanges.  “We need to discuss…

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Filed under: News - @ February 16, 2025 12:10 pm