The South Korean Financial Services Commission has enacted a new set of guidelines, allowing the Asian country’s citizens to engage in cryptocurrency transactions. The latest development marks a landmark decision, setting June 2025 as the date when the new rules will kick in.
According to reports, the Commission will allow non-profit corporations and virtual asset exchanges to sell digital assets. However, exchanges must structure their trading processes to minimize market impact when selling.
In the meantime, the Commission will create a “Donation Review Committee” charged with supervising external audit corporations engaging in digital asset transactions.
Background and Audit Firm Rules
The Korean regulators finalized the new guidelines during the 4th Virtual Asset Committee session at the government complex in Seoul.
The decision is a follow-up measure to the ‘Roadmap for Corporations’ participating in the virtual assets market, which the committee started during their previous meeting. It is crucial to note that the committee also focused on revising the ‘Best Practices for Trading Support’ guidelines and arrived at significant conclusions.
Related: South Korea’s Ruling Party to Dismantle Key Restrictions and Expand Access to Crypto Trading
According to reports, the committee resolved that regulators in South Korea will permit virtual asset sales for external audit firms that have operated for at least five years. However, the Donation Review Committee will scrutinize the corporations’ transaction details to ensure total compliance.
Meanwhile, non-profit corporations accepting crypto donations or sponsorships face specific requirements. They must maintain robust donation procedures, work with authorities to prevent money laundering, and limit accepted donations to virtual assets listed on at least three Won-denominated exchanges. The goal is to facilitate the immediate conversion of donated crypto assets into cash for beneficiaries.
Political Link to Upcoming Election?
Analysts think the emerging crypto-friendly regulations in South Korea could have a political undertone, considering the upcoming presidential election scheduled for June 3, 2025.
Related: South Korea Crypto Investments Surge: 30% of Population Now Owns Digital Assets
The presidential candidates are making notable pledges to support the crypto industry. Perhaps they are gauging the trend with the yardstick of the past US elections, where pro-crypto Donald Trump emerged with a landslide win.
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