Korea’s Cryptocurrency Access: Financial Services Commission Boosts Corporate User Accessibility
In a move that could shake the cryptocurreny scene, Korea’s Financial Services Commission (FSC) unveiled an ambitious plan on Monday to broaden the scale of access to cryptocurrencies for corporations. This move eradicates previous restrictions that had been in place since 2017, that denied these entities the ability to indulge in cryptocurrency trading.
The FSC’s roadmap meticulously outlines that during the first half of this year, certain agencies such as non-profits, universities, law enforcement, and cryptocurrency exchanges will now be allowed to cash in their “virtual currency” for hard cash. This move primarily serves the purpose of facilitating transactions for donations or charging fees.
Korea’s Cryptocurrency Access to Expand Further in the Latter Half of the Year
As the year progresses, the plan shows promise of further expansion. Towards the end of the year, about 3,500 corporates listed and registered businesses categorised as qualified professional investors will obtain the freedom to participate in cryptocurrency transactions.
Despite the progressive stance, the FSC remains vigilant about potential risks and does not propose granting cryptocurrency access to financial institutions. Instead, the emphasis for these financial companies will gravitate towards forthcoming legislation for security token offerings, a sector that is gaining momentum as we speak.
A huge evolution concerning Korea cryptos
Qualification Criteria for Enjoying Korea’s Cryptocurrency Access
Granting access does come with strict proviso. In order to qualify for this expanded cryptocurrency access, corporations will be required to have a minimum of KRW 5 billion ($3 million) in existing financial investments provided they have been externally audited. However, if they fail to meet this auditing requirement, they will need to hold a whopping KRW 10 billion ($7 million).
This significant move by the FSC not only fosters an environment of financial growth but also leverages the massive potential of cryptocurrency, shaping the financial landscape of Korea.
