South Korea’s financial regulators are set to make a final decision next month about corporate investments in cryptocurrencies. Several major domestic companies are ready to invest in Bitcoin (BTC), Ethereum (ETH), and other leading altcoins. However, the government has delayed its decision multiple times, waiting for the formation of the Virtual Assets Commission to guide the process.
Virtual Assets Commission Signals Progress
On November 6, the Virtual Assets Commission held its first meeting. The commission suggested that approval for corporate crypto investment could soon be granted. However, the chair of the commission clarified that the body would make its final decision in December. The commission spent much of its time discussing measures to regulate corporate crypto investments, which encouraged adoption supporters. Currently, South Korean regulations require individuals to have real-name bank accounts linked to crypto wallets to trade fiat for crypto. Banks have been instructed to reject corporate applications until regulators make a final decision.
International Trends Impact South Korea’s Decision
Critics argue that South Korea lacks a legal basis for blocking corporate crypto investments. They point out that companies in other countries are allowed to invest in cryptocurrencies. Some commission members have pushed for financial authorities to issue real-name accounts for corporations, especially since the South Korean crypto market has shown signs of stabilization. One committee member noted that countries such as the United States, Japan, and those in the European Union allow corporations to invest in crypto. He also mentioned that domestic and international conditions are changing, which requires a reassessment of South Korea’s stance.
Risks and Caution in the Market
While some members advocate for faster action, others urge caution. They warn that the volatility of the crypto market could harm other parts of South Korea’s economy. Additionally, there are concerns about the potential for money laundering through cryptocurrencies. These risks may influence the regulatory decision.
Industry Insiders Optimistic About Approval
Despite these concerns, industry insiders remain hopeful that corporate crypto investment will soon be approved. They believe that such a decision would double the nation’s crypto market capitalization and help stabilize the market. One insider mentioned that approval would provide a significant boost to the market’s reliability.
Growing Frustration Over Delayed Decisions
Some in the tech industry are frustrated with the slow pace of regulatory action. A Seoul-based IT startup owner, who spoke anonymously, expressed dissatisfaction, saying, “The government has really dragged its feet on this issue. If regulators want to let companies invest in crypto, they should make a clear decision. We need clarity, not ambiguity.”
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