South Korea to Permit Crypto Donations and Institutional Trading by 2025
Key Developments:
- Charities and universities in South Korea will be allowed to sell donated crypto assets starting Q2 2025.
- The Financial Services Commission (FSC) will enable 3,500 corporations to open real-name crypto trading accounts.
- A pilot program for corporate crypto trading will be launched, though financial institutions remain excluded.
- Banks will expand services for crypto firms and law enforcement, facilitating crypto asset liquidation.
New Policy Allows Crypto Donations to Be Sold
The South Korean FSC is set to introduce new regulations in 2025 that will enable organizations such as charities, universities, and cryptocurrency exchanges to convert donated crypto assets into cash.
Previously, nonprofit organizations could receive digital asset donations but were unable to sell them. Under the new policy:
- Charities will be allowed to liquidate crypto donations for operational funding.
- Universities can sell donated cryptocurrencies to support institutional expenses.
- Crypto exchanges will also be permitted to sell holdings received as user-generated fees, though bulk sales will be regulated to prevent market manipulation.
Exchanges must follow official FSC guidelines before selling their holdings, as South Korea moves toward greater institutional adoption of crypto trading.
Pilot Program for Institutional Investors
By mid-2025, South Korea’s FSC will initiate a pilot program allowing 3,500 publicly listed corporations to open real-name crypto trading accounts. The program is aimed at corporate and professional investors under the Capital Markets Act, though financial institutions remain excluded.
Since 2017, South Korea has restricted corporate access to crypto trading due to concerns over speculation and money laundering. This new initiative aligns with global trends, as more nations permit corporate investments in cryptocurrency.
Banks to Expand Crypto-Related Services
The FSC has directed banks to provide enhanced services for companies in the crypto industry. Key changes include:
- Allowing law enforcement agencies to liquidate confiscated crypto assets.
- Strengthening transaction controls to prevent illicit activities.
Retail investors in South Korea must open real-name accounts to trade crypto on exchanges that support Korean won transactions. While individuals have free access, corporations have remained restricted. The latest reforms aim to close this gap while maintaining compliance and regulatory oversight.
