South Korea Set to Allow Institutional Crypto Trading

South Korea plans to lift its institutional crypto trading ban, aligning with global rules, tightening meme coin standards, and revising regulations South Korea is planning to remove its ban on institutional crypto trading, potentially at some point this year.

According to local media, the nation's financial regulator, the Financial Services Commission (FSC), has announced plans to gradually permit institutional access to local crypto exchanges, beginning with non-profit organizations.

Until this point, South Korean banking guidelines have dictated that crypto trading has been limited to retail investors with verified accounts, essentially blocking institutional traders.

The move builds on the foundations of the Virtual Asset User Protection Act, enacted in July 2024 which introduced measures to safeguard investors such as including mandatory cold wallet reserves for exchanges, the storage of user funds in financial institutions, and the procurement of insurance against potential losses

South Korea’s efforts to modernize its crypto sector have been stinted by political turmoil, including the declaration of martial law in December 2024 under then-President Yoon Suk Yeol.