Yesterday Korea’s Financial Services Commission announced a roadmap to broaden access to cryptocurrencies for corporates, which have not been allowed to trade since 2017. During the first half of this year, non profits, universities, law enforcement agencies and crypto exchanges will be allowed to convert ‘virtual currency’ to cash. This is mainly amounts received as donations, or fees in the case of exchanges. In the second half, 3,500 listed corporates and registered corporations classified as qualified professional investors will be allowed to transact with cryptocurrencies.
However, the FSC is still concerned about contagion, which is why it won’t allow access to financial institutions. Instead, for financial companies it wants to focus on planned legislation for security token offerings.
Regarding the corporates, to qualify for access they must have at least KRW 5 billion ($3.5m) in existing financial investments if they are externally audited, otherwise they must have KRW 10 billion ($7m). Notably, the FSC compared this to Hong Kong, which requires corporates to have HKD 8 million in financial investments and a total assets of over HKD 40 million. Allowing access to other non-financial companies is considered a mid to long term objective.
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