crypto-news-flash.com
- South Korea’s FSC plans to allow corporate investments in crypto assets, starting with non-profit organizations.
- The FSC aims to align regulations with global standards by setting listing criteria and enhancing self-regulation.
South Korea’s Financial Services Commission (FSC) has revealed plans to permit corporate investments in cryptocurrencies, indicating a dramatic change in the nation’s financial regulatory stance. This decision could provide the blueprint for increased take-up of the assets, improving liquidity and the associated market potential.
CEO Kwon Dae-young of the Financial Supervisory Service called for the establishment of a framework for supporting corporate investment in crypto-assets. The FSC is to set listing criteria and adopt rules on the conduct of virtual asset exchanges. This is in harmony with international practices and seeks to design an organized environment for incorporating corporate entities.
Currently, corporate accounts are prohibited from investing in virtual assets directly. The authorities also recommend that banks not open real-name accounts for corporate transactions. To this end, under Phase 2 of the implementation plan, the FSC aims to remove these barriers, beginning with non-profit organizations and moving up to for-profit companies.
In addition, the FSC suggests that shareholders’ eligibility should be examined and social credit included. Other measures for improved self-regulation, such as the screening criteria for volatile tokens like meme coins, are also being discussed. These steps are designed to facilitate the development of new and innovative financial services and promote new entrants in the market.
Broader Financial Reforms
The FSC is also in the process of developing further regulatory measures to stimulate corporate financial operations. There is a major recommendation that the cap on stock ownership of non-subsidiary firms be increased from 5% to 15%. This change is expected to increase corporate operational advantage.
In addition, the regulators plan to encourage data sharing within the financial holding groups and loosen up the rules on consignment businesses. The proposed link between medical savings accounts and Individual Savings Accounts (ISAs) indicates the government’s drive towards extending financial services.
The move to allow companies to invest in cryptocurrencies is considered one of the most significant developments within the industry. This means that digital assets gain a form of legitimacy that may lead to a great deal of inflows. Higher liquidity and expanded use are anticipated to boost the bullish market sentiment.
According to a recent CNF report, Bitcoin is the most used Cryptocurrency in South Korea. Ripple’s XRP has grown in popularity and overtaken Ethereum, which the development of the South Korean market for digital assets can explain.
Jeju Island’s NFT Initiative
In related news, Jeju Island, a leading South Korean tourist attraction, is developing NFTs to attract younger guests. As disclosed by CNF, The province aims to issue NFT tourist cards called “Tao” in 2025. These cards, associated with the blockchain, will provide discounts and travel concessions aimed at millennials and Gen Z travelers.
The Tao cards will be paired with Jeju’s native and locally backed cryptocurrency, Tamna Jeon, which has been circulating since 2019 to help boost the island’s economy. Tourists will be able to use the stablecoin and NFT to get discounted attraction fees and other advantages.