South Korean regulators are preparing to let universities trade cryptocurrencies starting in 2025, according to a Hanguk Kyungjae report. The Financial Services Commission (FSC) also plans to permit local government bodies to sell digital assets.
Gradual Crypto Regulation Rollout
Sources say the FSC will release a “Roadmap for Allowing Corporations to Open Virtual Asset-Won Accounts” by the end of 2024. Critics argue that South Korea is falling behind global competitors. Many South Korean firms want to buy cryptoassets to improve their balance sheets, following the lead of American, European, and Japanese companies.
Legal Barriers for Corporate Crypto Investments
Currently, South Korean law prohibits corporations from investing in Bitcoin or other digital assets. The FSC aims to change this, starting with universities, local governments, and nonprofit organizations.
Some universities, including Seoul National University (SNU), have received cryptocurrency donations. However, they cannot liquidate these assets due to current regulations.
Universities and Public Bodies to Trade Crypto
The FSC’s roadmap outlines “Stage 1,” which will allow universities, local governments, and public institutions to trade cryptocurrencies. This move will benefit SNU, which holds WEMIX tokens donated by WeMade in 2022. SNU has been unable to sell the tokens despite several requests.
Experts estimate SNU holds about 800 million won ($566,000) in WEMIX. The FSC has rejected previous requests to sell these coins, citing concerns that it might lead companies to donate their tokens to promote them.
Phases to Expand Crypto Access
“Stage 2” of the roadmap will enable crypto exchanges and related businesses to operate under stricter regulations. These businesses will treat cryptocurrencies like stocks or bonds.
“Stage 3” will grant most private companies the right to buy and sell crypto. However, this stage is considered a long-term goal.
Banks to Enter the Crypto Market
Later stages will allow financial companies, including banks, to enter the crypto market. The FSC plans to impose safety measures, such as limiting how much capital publicly listed companies can invest in crypto.
Public Bodies Hold Crypto Wallets
Currently, only the Prosecution Service and National Tax Service in South Korea have fiat-tradable crypto wallets. These wallets are used to liquidate confiscated or fraudulently acquired crypto.
Impact of Regulatory Developments
Speculators are watching Bitcoin prices closely, expecting further steps to support the cryptocurrency sector. However, South Korea faces challenges in preventing volatility in crypto-related stocks.
This regulatory shift shows South Korea’s goal to develop its crypto industry while managing potential risks.
The post Regulators Plan to Allow S Korean Universities to ‘Trade’ Crypto, Companies to Follow appeared first on Cryptonews.
