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The Financial Services Commission (FSC) of South Korea has announced plans to allow institutions, including law enforcement agencies and non-profit organizations, to liquidate cryptocurrency donations starting in the first half of 2025.
The decision was confirmed during the third Virtual Assets Committee meeting held on Feb. 13, 2025, in Seoul.
South Korea’s FSC: Regulatory Shift on Crypto Transactions
The move marks a shift in South Korea’s regulatory stance on corporate cryptocurrency transactions, which have been largely restricted since 2017 due to concerns over money laundering and speculative trading.
Notably, the FSC’s updated policy will enable institutions such as prosecutors’ offices, universities, and virtual asset exchanges to convert donated digital assets into cash.
“For law enforcement agencies, this will provide a legal basis to liquidate confiscated criminal proceeds,” said Kim So-young, Deputy Director of the FSC. “Non-profits and universities receiving crypto donations will also gain clearer operational guidelines.”
Pilot Program for Institutional Investors
In the latter half of 2025, the FSC plans to introduce a pilot program allowing professional investors and publicly listed companies to trade virtual assets for investment and financial purposes. Approximately 3,500 firms meeting specific financial thresholds will be eligible to participate.
South Korea’s regulatory approach aligns with global trends as major economies increasingly allow corporate participation in crypto markets. The FSC’s policy roadmap includes strengthening anti-money laundering measures and enhancing disclosure requirements for institutional investors.
Implementation and Future Outlook
A task force, including the Financial Supervisory Service, the Banking Association, and Digital Asset Exchange Association (DAXA), will oversee implementation. The FSC will also consider legislative adjustments to further integrate tokenized securities into the financial system.
The latest policy shift is part of South Korea’s broader strategy to develop a structured regulatory framework for virtual assets following the Virtual Asset User Protection Act, which took effect in July 2024
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