The Financial Services Commission (FSC) of South Korea announced that it wants to allow businesses, organizations to trade cryptocurrency, Bitcoin, and Ethereum slowly. This is under a wider plan to open up the crypto market on the condition to curb the risks and protect users.
Banning corporate crypto trading was the first thing the FSC did in 2017 due to that aim, which is to prevent problems such as speculation, money laundering, and price manipulation. The country’s market is now shifting. Nowadays, blockchain has increased the number of interested businesses and several countries have already allowed companies to trade crypto.
It will allow the first half of the year to sell crypto to government agencies, law enforcement, non-profits, universities. It will be possible for them to achieve it by way of exchange of their virtual assets for cash out purposes. In a pilot program, around 3,500 registered companies and professional investors will later be allowed to buy and sell crypto. The registered investors are already registered under South Korea’s Capital Market Act.
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South Korea’s new Virtual Asset User Protection Act will come into effect to protect users. It is also intended to make reforms to stem money laundering and require companies to stick to financial regulations. Like any other company the banks and the exchanges will examine those corporate applications to check whether the company is good to trade with.
Furthermore, the financial regulators, banks and crypto exchanges will be roped in by the FSC to set clear rules of trading. The regulation will make it more difficult to list new cryptocurrencies in order to reduce price volatility and market manipulation.
As a key change for South Korea’s crypto market, this hints at the future of the cash. Government hopes that the reforms will ease the growth of businesses while ensuring safety and security of the market to all the players.
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