South Korea Delays Decision on Corporate Accounts for Crypto Trading

South Korea delays decision on corporate crypto accounts while strengthening regulations, focusing on user protection law and stablecoin framework.

South Korean regulators have decided to delay a decision on allowing corporate accounts for cryptocurrency trading. The country’s top financial authority, however, the Financial Services Commission (FSC), chose to postpone the decision for further discussions. The issue was not included in the agenda of the virtual asset committee’s meeting schedule and this move came on Wednesday.

Expectations had at first been for the meeting to decide on corporate accounts. However, the FSC decided more time was required for proper review. However, even with this delay, it seems progress towards approval is set. FSC Vice Chairman Kim So-young said a decision is expected soon.

Extensive discussions have already taken place in the process of reviewing corporate accounts. The FSC has met 12 subcommittee and task force meetings to deliberate the matter. ”The policy review process is almost complete.” Soon we’ll report the results, Kim said.

The 15 members virtual asset committee is comprising of government officials, legal practitioners and security experts who act as an advisory body. The issue of corporate accounts was not discussed at the meeting, which was concerned primarily with other matters. Corporate accounts could open lots of doors if accepted. Examples of these might be virtual asset investments, payment settlements and even new types of business ventures.

South Korea FSC to Strengthen Crypto Regulations, Delays Corporate Account Decision

Industry officials say allowing corporate accounts is a key condition for the growth of the virtual asset market. South Korea could stay globally competitive. Instead, the meeting was largely concerned with phase two of its virtual asset user protection law.

The law, however, has been in phase one since last July, when measures to protect users went into effect. This covered safeguarding deposits, preventing unfair trading, and more. Then, however, virtual asset issuance, distribution, and disclosure still need more rigorous regulation. The second phase of the law will, in the FSC’s view, cover these gaps.

At the same time, the committee ignited conversations on a regulatory structure for stablecoins. Cryptocurrency referenced in a stable way tied to fiat currencies are stablecoins. The committee will consider creating working groups and task forces to review detailed stablecoin regulations.

Ultimately, South Korea will continue to tighten its fingers on virtual asset regulations even if it delays a decision on corporate accounts. What the country’s financial authorities are trying to do is create a safer, more competitive environment for businesses and for recipients of remittances.