VirtualCurrency

The State Administration of Foreign Exchange (SAFE) in China has officially incorporated virtual currency transactions, including Bitcoin, into its foreign exchange regulatory framework. This strategic move signifies a more proactive and robust approach by Chinese authorities to manage the emerging risks associated with virtual currency trading and its impact on the country’s financial system. By extending its oversight, China aims to mitigate potential financial instability that could arise from the volatility of virtual currencies.
China has long maintained a clear stance on virtual currencies, characterized by early warnings about their risks, followed by stringent measures such as prohibiting financial institutions from engaging with virtual currencies and shutting down domestic trading platforms. These actions were part of a broader regulatory strategy designed to safeguard the economy from the inherent risks of digital currencies. The recent inclusion of virtual currencies under foreign exchange supervision adds a layer of protection, enhancing the existing regulatory framework.
However, China’s approach is not solely restrictive. While regulation is tightened, the government is also pursuing an innovative path by promoting the separation of virtual currencies from blockchain technology. This strategy allows for the advancement of blockchain innovations while maintaining a clear distinction between speculative digital assets and legitimate financial instruments. Moreover, China is continuing its research into legal digital currencies, aiming to create a secure and efficient alternative to decentralized digital currencies.
To enhance the effectiveness of this regulatory framework, the SAFE emphasized the importance of collaboration across various government departments. Coordinated efforts between the People's Bank of China, the Ministry of Public Security, and other key agencies will create a unified response to the challenges posed by virtual currencies. This multi-departmental cooperation will bolster regulatory efficiency, ensuring that China’s financial system remains stable and secure amidst the evolving landscape of digital currencies.
Through this comprehensive and balanced regulatory approach, China seeks to strike a delicate balance between fostering technological innovation and ensuring the financial security of its markets. By regulating virtual currencies while advancing research into digital legal tender, China is positioning itself as a leader in both financial stability and technological progress, paving the way for safer and more reliable financial services for its citizens.

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#CryptoOversight

South Korea to Let Companies Invest in Crypto: A Game-Changer for the Industry
South Korea’s Financial Services Commission (FSC) plans to allow corporations to invest in virtual assets using real-name accounts, starting with non-profits.
The move builds on the Virtual Asset User Protection Act, enacted in 2024 to stabilize the crypto market and protect investors.
With over 30% of South Koreans investing in crypto, the country is aligning regulations with global standards to boost its digital asset market.
South Korea is turning the page on its strict crypto regulations. For the first time, the government is planning to allow companies to invest in cryptocurrencies, starting with non-profit organizations.
This move, led by the Financial Services Commission (FSC), is a huge shift for a country where more than 30% of the population already trades digital assets.
Why This Matters
Until now, South Korean businesses were locked out of the crypto market. Even though there was no law against it, banks refused to issue the real-name accounts companies needed to invest. That meant while individuals could trade freely, corporations were stuck watching from the sidelines.
The FSC says it’s ready to change that. The plan starts with non-profits, letting them open these accounts and gradually expanding the access to other types of businesses.
“This is about catching up with the global market,” said Kwon Dae-young, an official at the FSC. “We’re building a framework to ensure fairness, trust, and stability for everyone involved.”
South Korea’s Crypto Craze
South Koreans are already big on crypto. As of November 2024, more than 15.59 million people—about a third of the country—were investing in digital assets. In just one month, 610,000 new investors joined the market, showing how fast crypto is growing here.
The government has also been easing up on taxes. A planned 20% tax on crypto gains over 2.5 million won (about $1,880 USD) was delayed in December, giving investors and businesses more time to prepare.
What’s Next?
The FSC isn’t stopping with corporate accounts. This move is part of a bigger effort to create smarter rules for the crypto industry. Officials are working on new policies to manage stablecoins, set listing standards for digital assets, and ensure crypto exchanges follow strict ethical guidelines.
These steps build on the success of the Virtual Asset User Protection Act, which came into effect in 2024. That law focused on protecting individual traders and making the market more secure. Now, the focus is shifting to include businesses and institutions.
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