South Korea is preparing to relax restrictions on cryptocurrency trading for institutional investors, marking a major shift in the country’s approach to regulating digital assets, according to Odaily Planet Daily.
South Korea’s Financial Services Commission (FSC) will roll out regulatory reforms in stages to allow institutions to participate in cryptocurrency trading. Currently, banks are prohibited from opening cryptocurrency trading accounts for institutional investors.
The FSC plans to launch the reform in cooperation with the Digital Asset Committee, and non-profit organizations may be the first to be allowed in. In addition, the FSC is preparing to launch the second phase of the (Virtual Asset User Protection Law) to formulate new guidelines.
The Financial Supervisory Service of South Korea also plans to amend the (Special Financial Transactions Act) to introduce a review system to evaluate the qualifications of cryptocurrency exchange shareholders and incorporate social credit assessments.