The report says that the institutional ban on cryptocurrency trading in South Korea may be lifted

South Korea’s Financial Services Commission (FSC) is reportedly planning to lift an effective ban on institutional trading of cryptocurrencies.

This decision as I mentioned By Yonhap News Agency, it aims to gradually enable institutional investors to open trading accounts on local cryptocurrency exchanges.

Currently, South Korean regulations only allow retail traders, who have been verified with their government names, to engage in cryptocurrency trading. While there was no explicit ban on institutional investors, the Financial Services Commission advised banks to restrict such entities from opening accounts on exchanges.

The proposed policy shift is in line with President Yeon Suk-yeol’s election commitments to boost the domestic cryptocurrency sector.

The ruling People Power Party has also called for the introduction of spot crypto exchange-traded funds (ETFs) in the country, a financial product that is not currently available.

The FSC plans to begin this process by first allowing non-profit organizations to participate in cryptocurrency trading. Furthermore, the Commission is expected to collaborate with the Digital Assets Commission, a policy advisory group under its jurisdiction, to develop a comprehensive regulatory framework.

As part of this regulatory development, the Financial Services Commission is also looking to amend the Financial Information Act. This amendment will introduce a screening system for major shareholders in virtual asset service providers, with the aim of enhancing investor protection.

In addition, the Financial Services Commission (FSC) is working on follow-up regulations to the Virtual Asset Investor Protection Act, which came into force in July last year.

This second phase of regulation will focus on establishing rules for stablecoins, token lists, and operational requirements for cryptocurrency exchanges.