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South Korea to Allow Institutional Crypto Trading in H2 2025, Expanding Market Access

Crypto Trading

South Korea’s FSC will allow institutional investors to open crypto trading accounts in H2 2025, with safeguards to manage risks. Learn more about the pilot program.

FSC Opens Crypto Trading for Qualified Investors

South Korea’s Financial Services Commission (FSC) announced on Feb. 13 that it will permit institutional investors, including listed companies, to open virtual asset trading accounts in the second half of 2025. The move aims to meet growing demand from corporations seeking exposure to blockchain-related investments.

Pilot Program to Include 3,500 Corporate Entities

The FSC’s decision will apply to approximately 3,500 corporate entities classified as “qualified investors.” These firms have demonstrated strong interest in digital assets, prompting regulators to create a controlled framework for participation. The initiative is also part of South Korea’s broader effort to remain competitive as other nations expand their crypto policies.

Risk Mitigation and Market Safeguards

Recognizing the risks of increased institutional participation, the FSC will implement protective measures. The regulator will introduce new transaction guidelines requiring banks to strengthen verification processes, virtual asset exchanges to use third-party custody services, and expanded investor disclosures.

Strict Screening for Institutional Accounts

Both banks and virtual asset exchanges will play a key role in screening institutions applying for crypto trading accounts. This due diligence process aims to prevent illicit activities and ensure that only eligible companies gain access.

Financial Firms Initially Excluded

Financial institutions will not be included in the initial phase. The FSC’s virtual asset committee recommended their exclusion to prevent risk spillover into the broader financial system. Authorities will assess market conditions and pilot program outcomes before making further decisions on expanding access.

South Korea’s move signals a significant step in institutional crypto adoption. Companies interested in participating should prepare for regulatory compliance and monitor updates from the FSC.