South Korea to Allow Crypto Sales with New Regulations – Coincu

South Korea’s Financial Services Commission will permit certain non-profits and registered cryptocurrency exchanges to sell crypto assets starting June 2025, ending a longstanding ban.

The move signals a shift towards institutional participation with stricter AML and KYC regulations likely elevating transparency.

South Korea to Open Crypto Sales by Mid-2025

South Korea’s Financial Services Commission revealed changes to crypto regulations, allowing specific non-profits and exchanges to sell assets by June 2025. The decision follows the prior restriction on institutional trading. Enhanced AML and KYC procedures are introduced, emphasizing scrutiny over the source and intent of funds from new institutional players. This approach aims to diversify market participation while ensuring compliance with international standards.

Immediate changes will impact how exchanges and partner banks engage with institutions. The Commission’s plan marks a progressive step toward opening the crypto market, expected to yield higher liquidity and market maturity. Engagement will commence with specific entities, gradually involving listed companies by late 2025.

Reactions highlight anticipation among Korean crypto communities, with expectations of increased trading volumes and market sophistication. Although there haven’t been notable public statements from cryptocurrency leaders at the time, market analysts project bullish outcomes for prominent tokens like Bitcoin and Ethereum.

“The introduction of stringent AML and KYC measures is a necessary step that will foster a safer and more transparent crypto trading environment,” stated a representative from the Financial Services Commission.

Impact on Crypto Market Dynamics and Institutional Inflows

Did you know? Past regulatory easing in countries like Japan and Singapore resulted in spikes of institutional inflows and market activities. Similar trends could emerge in South Korea, boosting crypto dynamics and liquidity.

As of May 21, 2025, Bitcoin is trading at $108,988.59 with a market cap of 2.17 trillion, and dominates 63.12% of the market. Notably, its 24-hour trading volume soared to 61.98 billion, reflecting a 4.06% price increase. These figures, sourced from CoinMarketCap, showcase a growing trend over the past months.

Coincu’s research team foresees financial impacts from South Korea’s policy shift. Strengthened AML/KYC enforcement may bolster trust and transparency in the crypto space. Increased institutional engagement isn’t just a possibility; it’s likely to accelerate the evolution and adoption of cryptocurrencies in the region.