South Korea’s financial watchdog said non-profit organizations and virtual asset exchanges will be able to sell their crypto holdings starting in June under new rules aimed at tightening oversight while enabling operational flexibility.
In February, the Financial Services Commission (FSC), the country’s top financial regulator, revealed it was planning to lift a ban imposed in back in 2017 that restricted corporations and banks from trading cryptocurrencies a bid to avoid “overheated speculation.” Details of the process were agreed on earlier this month, the FSC said in a statement on its website.
Under the new framework, non-profits must meet a strict set of conditions, including at least five years of audited operations and the formation of internal committees to vet donations, the Financial Services Commission (FSC), the country’s top financial regulator, said in a press release.
They’ll only be able to accept crypto that’s listed on at least three Korean won-based exchanges and will generally be required to sell donated tokens immediately.
Exchanges, meanwhile, will be allowed to sell crypto, but only to raise operating capital. They’ll face daily sale limits and will be banned from selling through their own platforms.
Only the top 20 coins by market capitalization traded on major Korean exchanges will qualify for sale. All transactions must meet the same anti-money laundering standards applied to other virtual asset service providers, the document details.
The FSC also tightened listing rules. Local crypto exchanges will need to filter out what it called “zombie” coins — those with low trading volume or market cap — and set higher bars for listing memecoins, such as user base or transaction history thresholds.
The goal is to reduce sudden price spikes and increase investor protection, the FSC said. The updated listing standards will start in June.
The FSC plans to expand these rules to corporations and institutional investors later this year, as signaled in February.
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