According to recent news from South Korea, the Financial Services Commission (FSC) has signaled its intention to endorse corporations investing in cryptocurrencies. This development is a substantial shift within the crypto market, particularly in South Korea where regulatory bodies are also considering enhancing partnerships between traditional financial institutions and tech-driven finances companies.
South Korea’s FSC Takes a Stand On Corporate Investments In Crypto Assets
Starting from various perspectives, yet central to our discussion is a comment made by Director Kwon Dae-young. He emphasized the importance of exploring methods for establishing universal listing standards. A recent report reveals that he further stated the agency’s intention to harmonize its system with global standards following his assertion about implementing guidelines for behavior in virtual asset trading platforms.
In South Korea, a limitation hinders the growth of certain segments due to the regulation that only allows specific accounts for investing in digital assets, and banks being instructed not to open real-name accounts for corporations.
In South Korea, it’s hard for some parts to grow because only certain accounts can invest in virtual money, and banks are told not to create such accounts for companies.
If given the green light, the initial phase of our project might begin by collaborating with non-profit organizations through the Virtual Asset Committee. Upon successful implementation, the second stage will follow, introducing rules for the circulation and creation of digital assets.
Functioning of Corporate Virtual Asset Trading
South Korea’s Financial Services Commission (FSC) intends to implement a new system where shareholders will initially be assessed for eligibility and then expected to meet social responsibility standards. Additionally, the FSC is aiming to strengthen self-regulation by establishing criteria for evaluating cryptocurrencies like meme coins, potentially based on their volatility or the market impact they create.
One crucial stage in our process involves fostering the initial adoption of cutting-edge financial services within institutions. This action will help facilitate growth, especially for newcomers who are just starting to explore the innovative sandbox environment for the very first time.
More on the Table by South Korea’s FSC
Currently, businesses can own up to 5% of stocks in non-subsidiary firms. However, South Korean regulators are considering raising this limit to 15%. If approved, companies may soon have the opportunity to acquire more shares, potentially giving them greater influence and control over these firms’ operations.
In summary, there’s a proposed strategy to ease regulations and promote data sharing among financial conglomerates for the consignment business. Also mentioned in a news article is the intention to connect the ‘medical savings account’ functionality with Individual Savings Accounts (ISAs).
Impact on Crypto
The move by South Korea to allow corporations to invest in cryptocurrencies is seen as a significant endorsement of the crypto industry, potentially bringing in more funds and boosting market liquidity and optimism about its future growth.
Nevertheless, the price of Bitcoin experienced a significant drop today due to a widespread cryptocurrency market decline. Nonetheless, should developments continue in South Korea and if Donald Trump implements his pro-cryptocurrency policies, it’s likely that the crypto sector will undergo substantial changes in 2025.
The incoming U.S. President hints at a promising outlook for digital currencies, as demonstrated by his recent dinner with Brad Garlinghouse.
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2025-01-08 11:59