South Korea is working with various internal authorities to develop its Web3 market. In a recent move, the Financial Services Commission (FSC) has launched a roadmap to gradually integrate local companies into the VDA market, which is mainly composed of cryptocurrencies. Looking ahead, South Korea aims to assess the financial aspects of cryptocurrencies under legal supervision and boosting sector growth.
The FSC said in its statement that the country will conduct two trials in 2025: crypto-related sales transactions and VDA transactions for investment and financial purposes.
Details of the FSC Overview
South Korea recently implemented the “Virtual Asset User Protection Act” to strengthen investors’ safeguards. After deliberation, the Virtual Assets Committee concluded that companies should have the opportunity to explore the VDA market under the supervision of FSC.
FCA noted that elaborating on the factors that led to this decision, “Major countries overseas have widely allowed companies to participate in the market, and the market environment is changing as domestic companies are also seeing an increase in demand for new blockchain-related businesses. Therefore, companies are allowed to The demand for trading virtual assets is increasing in South Korea.”
The FSC document claims that under the Capital Markets Act, approximately 3,500 listed companies and companies have registered themselves as professional investors. As part of the roadmap, the country will begin allowing select institutional investors to open real-name trading accounts for VDA engagements. Companies that qualify will need to balance KRW of 10 million (approximately Rs 6 lakh) in financial investment products between KRW of Rs 5 lakh (approximately Rs 3 lakh) to obtain the pilot program.
“Under the Capital Markets Act, professional investors can already invest in derivatives with the greatest risk and volatility. These companies have high demand for blockchain-related businesses and investments,” the FSC said in an announcement post.
South Korea also plans to allow organizations such as educational institutions and charities to sell donations they receive in cryptocurrencies to earn financial gains in the market. The FCA has listed law enforcement agencies, designated donation organizations, universities, crypto exchanges and school companies as qualified participants in these trials.
The agency further noted that the Virtual Assets Commission has worked with 12 subcommittees and traditional financial institutions to propose this roadmap for companies to interact with VDAS.
FSC formed a task force
FSC said it will establish a crypto-focused contingent with the Korea Bank Federation and the self-regulated digital asset exchange Joint Consulting Group (DAXA) to finalize “internal control standards” and “sell/transaction guidelines” , implement its prepared roadmap onto the Web3 van.
The FSC has not announced a timetable for establishing a task force.
“In addition, it plans to further strengthen communication with the market, including virtual asset business operators and industry experts to support smooth corporate market participation in accordance with the roadmap,” the agency noted.
