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A financial regulator in South Korea is set to make “a final decision” next month regarding the approval of corporate investments in cryptocurrency.
Numerous prominent domestic companies are prepared to utilize their balance sheets to acquire Bitcoin (BTC), Ethereum (ETH), and significant altcoins.
Nonetheless, Seoul has consistently postponed a resolution on this issue until the establishment of a new regulatory body: the Virtual Assets Commission.
South Korea’s #CBDC pilot has commenced with seven banks, aiming to enhance public service accessibility through digital tokens.#Blockchain #SouthKoreahttps://t.co/enq3oyLW8r
— Cryptonews.com (@cryptonews) November 6, 2024
Corporate Crypto Investment Approval?
According to Hanguk Kyungjae, the commission convened for its inaugural meeting on November 6, where it indicated that approval might soon be on the horizon.
However, the chair of the commission stated that no “final” decision would be reached until the body reconvenes in December.
Proponents of adoption may find encouragement in the fact that the Virtual Asset Committee dedicated a significant portion of its meeting to “discussing measures” pertinent to this issue.
To exchange fiat for cryptocurrency in South Korea, individuals are required to obtain “real-name” bank accounts that are linked to their crypto wallets.
Regulators have instructed banks to reject all corporate applications while awaiting their decision.
South Korean President Yoon Suk Yeol and Donald Trump discussed the presence of North Korean troops in Russia during a phone conversation https://t.co/GRz6dm4Dbp
— Bloomberg (@business) November 7, 2024
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Critics contend that Seoul lacks a “legal basis” for this prohibition, arguing that competing firms abroad are “permitted to invest in cryptocurrency.”
Some members of the committee urged financial authorities to “actively consider issuing real-name accounts for corporations.” One member remarked:
“Major nations such as the United States, the countries of the European Union, and Japan allow corporations [to invest in crypto]. The domestic crypto market has also shown signs of stabilization since the introduction of recent legislation. We must take into account the evolving domestic and international circumstances.”
Conversely, others advocated for “caution,” asserting that the volatility and “risks” associated with the crypto market could potentially impact other sectors of the economy.
South Korea states it will strive to minimize any negative trade effects following the US election https://t.co/UZwbN1ZhSj pic.twitter.com/tN4zbr0OLM
— Reuters (@Reuters) November 7, 2024
They argued that cryptocurrency could also “be utilized for money laundering.”
Nevertheless, the media outlet reported that industry insiders “expressed expectations” that approval is now “imminent.”
The insiders suggested that approval would result in the nation’s crypto market capitalization figures doubling. One stated:
“If regulators permit corporate investment, the market will achieve greater stability. It will also enhance reliability.”
However, some criticized regulators for not acting swiftly enough to align with global trends. The owner of a Seoul-based IT startup, who spoke to Cryptonews.com on the condition of anonymity, stated:
“The government has truly delayed action on this matter. If regulators intend to allow companies to invest in crypto, they should make that clear. We require clarity, not ambiguity.”
The post South Korean Regulator to Rule on Corporate Crypto Investment Next Month appeared first on Cryptonews.
