South Korean Regulator to Rule on Corporate Crypto Investment Next Month

A South Korean financial regulator will make “a final decision” on whether or not to approve corporate crypto investment next month.

Several leading domestic firms are ready to use their balance sheets to buy Bitcoin (BTC), Ethereum (ETH), and major altcoins.

However, Seoul has repeatedly delayed a decision on the matter until the launch of a new regulatory advisor: the Virtual Assets Commission.

🇰🇷 South Korea’s #CBDC pilot takes off with seven banks, seeking to make public services more accessible through digital tokens.#Blockchain #SouthKoreahttps://t.co/enq3oyLW8r

— Cryptonews.com (@cryptonews) November 6, 2024

Corporate Crypto Investment Green Light?

Per Hanguk Kyungjae, the commission held its first meeting on November 6, where it suggested that approval may finally be forthcoming.

But the commission’s chair said no “final” decision would be made until the body meets again in December.

Adoption enthusiasts will have been cheered by the fact that the Virtual Asset Committee focused much of its attention at the meeting on “discussing measures” related to the matter.

In order to trade fiat for crypto in South Korea, individuals must obtain “real-name” bank accounts linked to their crypto wallets.

Regulators have told banks to turn down all corporate applications pending 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

International Precedent

Critics say that Seoul has no “legal basis” for this block. They argue that rival firms overseas are “allowed to invest in cryptocurrency.”

Some committee members urged the financial authorities to “actively consider issuing real-name accounts for corporations.” One member said:

“Major countries such as the United States, the countries of the European Union, and Japan let corporations [invest in crypto]. The domestic crypto market has also shown signs of stabilizing since the launch of recent legislation. We must consider the changing domestic and international conditions.”

However, others argued for “caution,” stating that the volatility and “risks” of the crypto market could end up affecting other parts of the economy.

South Korea says it will work to minimise any adverse trade impact after US election https://t.co/UZwbN1ZhSj pic.twitter.com/tN4zbr0OLM

— Reuters (@Reuters) November 7, 2024

They claimed that crypto could also “be used for money laundering.”

Regardless, the media outlet reported that industry insiders “expressed expectations” that approval is now “imminent.”

The insiders claimed that approval would see the nation’s crypto market capitalization figures double. One said:

“If regulators approve corporate investment, the market will become more stable. It will also provide a reliability boost.”

However, some accused regulators of failing to act fast enough to keep up with global trends. The owner of a Seoul-based IT startup who spoke to Cryptonews.com on condition of anonymity said:

“The government has really dragged its feet on this issue. If regulators want to let companies invest in crypto, they should say so. We need clarity, not ambiguity.”