Starting this June, South Korea will reopen its crypto market to select institutions. Non-profits and crypto exchanges can now legally sell digital assets under new regulations.
Non-profit groups may liquidate crypto donations. At the same time, registered exchanges may sell crypto collected through trading fees.
But the government isn’t opening the floodgates without tighter oversight.
The Financial Services Commission (FSC) issued a new directive on Tuesday. It orders crypto platforms and their partner banks to strengthen know-your-customer (KYC) rules.
Firms must now thoroughly verify where new institutional clients get their funds and why they’re transacting in crypto. The regulation targets money laundering risks tied to large-volume accounts.
Regulators also want to monitor institutional leadership, flagging any executives connected to suspicious financial activity.
The Korea Federation of Banks and the Digital Asset Exchange Association (DAXA) will distribute compliance guidelines later this month. These will detail how banks and crypto platforms must implement the FSC’s new standards.
More Institutional Participation Coming in 2025
South Korea also plans to expand institutional crypto access again by late 2025. Publicly listed companies and certified professional investors could soon gain trading rights on exchanges.
Authorities will pair that move with even tougher anti-money laundering (AML) rules, the FSC said.
This measured reopening reflects the country’s aim to balance innovation with financial integrity, while attracting serious players to its digital asset markets.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/south-korea-tightens-kyc-rules-as-crypto-ban-eases/