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South Korean Authority Refutes Claims of Upcoming Approval for Companies to Purchase Cryptocurrency
The Financial Services Commission (FSC) of South Korea has refuted claims suggesting it is on the verge of permitting companies to purchase cryptocurrency using their balance sheets.
According to Hanguk Kyungjae, the FSC informed media representatives that these claims were “not accurate.”
Will the Regulator Allow South Korean Companies to Purchase Crypto?
At the beginning of the month, reports emerged indicating that the FSC was ready to permit educational institutions to convert cryptocurrency donations into fiat currency.
These reports suggested that this would mark the initial phase of a broader plan, which would ultimately enable South Korean businesses to acquire cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
[Press Release] The Financial Services Commission convened a meeting to assess business financing conditions and response strategies with officials from policy financial institutions and related sectors on December 19. https://t.co/QtSVRIB88h
— Financial Services Commission – FSC Korea (@FSC_Korea) December 19, 2024
The reports also asserted that the FSC would allow “ordinary” businesses to purchase cryptocurrency prior to the banking sector.
“We are still deliberating whether we will permit corporations [to buy and sell crypto]. The reports are not accurate. The Financial Services Commission’s Virtual Assets Division has not verified anything regarding this issue.”
South Korean Financial Services Commission spokesperson
Current South Korean legislation does not explicitly prohibit companies from holding cryptocurrency. However, to trade BTC, ETH, and other altcoins, individuals must establish bank accounts linked to cryptocurrency exchanges.
The guidelines from the regulator direct financial institutions to deny all such requests from corporate clients.
South Korea is set to issue its first won-denominated foreign-exchange stabilization debt in over twenty years next month, as per a finance ministry official with direct knowledge of the initiative https://t.co/Wu0tz7iRD3
— Bloomberg Markets (@markets) December 23, 2024
Bitcoin ETF Approval Facing Additional Delays?
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The earlier reports indicated that government ministries, local government entities, universities, and charities would be permitted to liquidate any cryptocurrency they possess “in the first half of 2025.”
Some South Korean companies are expressing frustration, claiming they have fallen behind their international competitors in the US and Japan.
American firms like MicroStrategy and Japanese companies such as Remixpoint have accumulated significant Bitcoin reserves in recent years.
However, the FSC has declined to allow South Korean companies to follow suit, stating that further discussions are necessary beforehand.
The same FSC spokesperson also dismissed reports that the regulator had established a timeline for approving crypto spot exchange-traded funds (ETFs). The official stated that these claims were “entirely unfounded,” adding:
“We have not discussed the timing for the launch of virtual asset ETFs.”
Crypto hackers from North Korea stole $1.3 billion in funds in 2024, according to new data released this week by Chainalysis.#NorthKorea #CryptoHackershttps://t.co/TQYgKiaQ22
— Cryptonews.com (@cryptonews) December 20, 2024
‘Significant Demand’
Other media sources, citing unnamed insiders, have reported that the FSC is still in discussions with “ministries, organizations, and private experts” before making decisions on new cryptocurrency regulations.
They believe the FSC is cautious about permitting companies to buy and hold cryptocurrency, as regulators are concerned that such approval could exacerbate the already high demand for cryptocurrency exchange and custody services.
Earlier this month, Kim Seo-jun, the CEO of the blockchain accelerator Hashed, highlighted “a significant institutional demand for Bitcoin ETFs” in South Korea and beyond.
The post S Korean Regulator Denies Reports Claiming It Is About to Let Companies Buy Crypto appeared first on Cryptonews.
