South Korea Enhances Crypto Regulations in Advance of Institutional Entry

South Korea is tightening its regulations on digital asset transactions as it prepares for institutional players to enter the crypto market.

This includes setting new guidelines for nonprofit crypto sales and more stringent exchange listing standards.

On May 20, the Financial Services Commission (FSC) announced at its fourth Virtual Asset Committee meeting that it had finalized significant regulatory changes.

Effective in June, the new rules will permit nonprofits and virtual asset exchanges to sell cryptocurrencies under enhanced compliance requirements.

Nonprofit organizations must have at least five years of audited financial history and must create Donation Review Committees to assess each donation and the liquidation approach.