The Financial Services Commission (FSC) of South Korea has announced that they will postpone the deadline for deciding on the proposal to allow businesses to open cryptocurrency accounts. The final decision is expected to be made after the Virtual Asset Committee meeting, which is scheduled for January 2025.
Previously, the FSC had proposed a plan to allow non-profit organizations, including government agencies, public institutions, and universities, to open cryptocurrency accounts using their real names as a first step in accessing digital assets. However, the final plan has not yet been approved, leaving businesses and institutional investors facing legal barriers to participating in the cryptocurrency market in South Korea.
The ban on cryptocurrency investment for businesses was issued by the South Korean Cabinet in December 2017 through an emergency administrative order. This has prevented organizations and companies from directly participating in the cryptocurrency market, limiting the development of this industry in a country known as a leading blockchain technology hub in Asia.
Experts and investors in the cryptocurrency field in South Korea have repeatedly called on the government to make a decision to allow legal entities and institutional investors to participate in the market. They emphasize that opening the market to businesses not only promotes the stability and transparency of the market but also plays an important role in the healthy development of the digital asset ecosystem.
Additionally, many opinions are concerned that the delay in implementing relevant policies could undermine South Korea's competitiveness in the global cryptocurrency market. Meanwhile, other countries such as the United States, Singapore, and Japan are quickly adjusting their legal frameworks to support the development of the blockchain industry and digital assets.
