South Korea plans to allow companies to start trading cryptocurrencies

South Korea plans to allow companies to gradually start trading cryptocurrencies. The Financial Services Commission issued a press release on February 13 announcing a plan to gradually lift the ban that prevented institutions from trading virtual assets.

Early this year, there were rumors that South Korea was considering lifting its ban on institutional cryptocurrency trading.

In the first part of the program, law enforcement agencies, non-profit organizations, schools, and universities will be able to sell cryptocurrencies such as Ethereum (ETH) and Bitcoin (BTC). This is for cashing out, and these groups will be able to use virtual asset exchange services in the first half of the year.

After that, South Korea will start a pilot program for about 3500 listed companies and institutions to buy and sell cryptocurrencies. Professional investors registered under the country's capital market law will be able to trade digital assets when this program starts in the second half of the year.

Since the government imposed restrictions on the trading of cryptocurrencies in 2017, companies and other professional groups have been unable to do so. The aim of this step was to stop speculation, money laundering, and market fluctuations.

With the aim of establishing an organizational framework for internal control standards, the Financial Services Authority plans to form a working group with relevant organizations.

The Financial Supervisory Authority, the Korean Banking Federation, and the Digital Asset Exchange Alliance (DAXA) will work together to help establish rules for cryptocurrency trading.

The Financial Services Authority said that working with exchanges and industry experts is also an important part of companies' plans to enter the virtual asset market.

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