The Financial Services Commission (FSC) of South Korea plans to issue new guidelines for crypto investment in the third quarter of this year. According to the country’s top financial regulator, this move signals the country’s intention to end the de facto ban on institutional investment in digital assets. South Korea to Create New Rule for Stablecoins This ban has limited financial institutions and companies looking to enter the crypto market. As such, South Korea is changing its rules to create a safer and clearer environment for trading cryptocurrency. This change will help financial institutions and investors better understand the guidelines, allowing them to participate confidently in crypto markets. Furthermore, the FSC is creating new rules for cryptocurrencies, focusing mainly on stablecoins. Stablecoins are digital currencies linked to traditional assets, like the US dollar, making them a more stable investment than volatile cryptocurrencies like Bitcoin. South Korea’s attention to stablecoins shows the country’s aim to ensure crypto market security and reliability while encouraging innovation in finance. FSC Scales Process for Crypto Bill It is worth noting that South Korea is progressing towards establishing a complete regulatory framework for crypto, with follow-up legislation expected to be completed this year. According to reports, the FSC outlined specific areas the legislation would address. The main topic includes making new crypto exchange listings more transparent. As cryptocurrency grows, countries create rules to clarify regulations and protect investors. South Korea, for instance, introduced its first crypto laws in July 2024 after a draft bill was approved in May 2023 . Although South Korea has not outrightly prohibited corporate cryptocurrency accounts, banks have been advised against offering such services. However, there are signs that the FSC might approve corporate trading accounts incrementally by 2025. South Korea and Web3 Growth Interestingly, South Korea has one of the largest crypto markets in the world. A previous report by TheCoinRise shows that over 30% of its population holds crypto investments . As of November 2024, the number of crypto investors had soared to almost 16 million. From July to November 2024, the value of South Korea’s cryptocurrency market significantly surged. The average amount held by South Korean investors in digital assets reached 6.58 million, indicating an increasing trust in cryptocurrencies as a viable, long-term investment option. Another report also shows that South Korea’s retail trading for cryptocurrencies surged to an impressive $18 billion within 24 hours. The post South Korea to Issue New Guidelines for Crypto Investment appeared first on TheCoinrise.com .
