South Korea Introduces Stricter Crypto Rules as Institutional Players Enter
As South Korea prepares to welcome institutional investors into its crypto market, it is tightening regulations on digital asset transactions. This involves implementing new guidelines for nonprofit crypto sales and stricter listing requirements for exchanges.
On May 20, the Financial Services Commission (FSC) announced the finalization of extensive new measures during its fourth Virtual Asset Committee meeting.
Starting in June, the updated rules will permit nonprofit organizations and virtual asset exchanges to sell cryptocurrencies, adhering to new compliance standards. Nonprofit organizations are required to have a minimum of five years of audited financial history and must form Donation Review Committees to assess the validity of each donation and its liquidation.
To address money laundering concerns, all donations must pass through verified Korean won exchange accounts, with verification obligations on banks, exchanges, and nonprofits. Cryptocurrencies must be listed on at least three major domestic exchanges to qualify, and liquidation should occur immediately upon receipt.
