South Korea is planning to ease its restrictions on institutional cryptocurrency trading, starting with non-profit organizations. This move is part of the government's efforts to strengthen the crypto sector, which has been primarily limited to retail traders.
The Financial Services Commission (FSC) aims to gradually allow institutions access to local crypto exchanges. This policy shift aligns with the enactment of the Virtual Asset User Protection Act, which aims to enhance investor safeguards and combat unfair trading practices. The FSC is also working on expanding the law's scope to include regulations for stablecoins, crypto exchanges, and token listings.
Additionally, the government is taking a strong stance against crypto scams, with perpetrators who gain over $4 million potentially facing life sentences. However, political instability has hindered critical legislative initiatives aimed at modernizing the industry, raising concerns about South Korea's competitiveness in the global crypto landscape.
Looking ahead, the FSC plans to tighten screening criteria for speculative assets and introduce forensic tools to investigate unlawful trading behaviors, all in an effort to promote responsible trading practices and bolster investor confidence.