- The South Korean government will gradually lift the ban on corporate cryptocurrency trading to help corporations invest in digital assets
- The ban was initially introduced in 2017 to prevent speculation and money laundering, but with growing adoption, institutional crypto trading will be allowed
- The phased lift will start with non-profits, law enforcement, and educational institutions, followed by around 3,500 listed companies
South Korea is set to gradually lift the ban on corporate cryptocurrency trading. This development was announced in a press release by the Government and is set to help corporations enter the recent global trend of investing in digital assets reserves.
The ban was initially introduced in 2017 when the market was in a completely different state. At the time, the South Korean government feared that corporate crypto investments could lead to an unhealthy speculative market, as well as the potential for money laundering.
Now with the growing adoption and usability of digital assets, the South Korean government is set to allow institutional crypto trading. The lift will be imposed gradually, in order to ensure a smooth transition, minimize market disruption, and allow time for regulatory adjustments and compliance measures.
In the first phase, non-profit organizations, law enforcement agencies, and educational institutions will be allowed to sell Bitcoin and Ethereum. Following that, South Korea will then introduce a more encompassing program, allowing around 3,500 listed companies to buy and sell digital assets.
South Korea has become one of the most thriving cryptocurrency hubs in Asia, with over 15.59 million natives investing in crypto by 2024. With this development, the nation could further solidify its position as a leading player in the global cryptocurrency market.
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