South Korea to Permit Corporate Real-Name Accounts for Virtual Asset Trading

South Korea's 2025 Financial Services Commission Plan: A New Era for Virtual Asset Trading

On January 8, 2023, the South Korean Financial Services Commission (FSC) unveiled its major work plan for 2025, aiming to expand the landscape of virtual asset trading in the country. This proposal is set against a backdrop of increasing interest and investment in cryptocurrencies and blockchain technology.

Introduction of Real-Name Accounts for Corporations

One of the significant milestones outlined in the FSC's plan is the gradual allowance for corporations to open real-name accounts for virtual asset trading. While there is no existing legal prohibition against issuing real-name accounts to corporations, previous advisories had steered banks away from providing such accounts. This change signifies a shift in regulatory attitudes towards the virtual asset market.

Phased Introduction: Starting with Non-Profit Corporations

The FSC's plan is to initiate this process by first granting real-name accounts to non-profit corporations. By starting small, the commission hopes to develop a clearer picture and gather insights that will guide further implementation.

Advancement of the Second Phase Virtual Asset Act

In conjunction with the introduction of corporate real-name accounts, the FSC is dedicated to advancing the "Second Phase Virtual Asset Act." This legislative framework will focus on the regulation of virtual asset issuance and circulation, crucial for ensuring market stability and consumer protection.

Key Focus Areas for Future Discussions

Future regulatory discussions are set to tackle several key areas within the virtual asset space. These will include:

• Listing Standards: Establishing rigorous criteria for digital asset listings to draw in investors safely.
• Stablecoin Management: Creating guidelines for the governance and operational integrity of stablecoins, which have gained traction worldwide.
• Conduct Rules for Virtual Asset Exchanges: Developing comprehensive rules to ensure the ethical and accountable operation of exchanges, aligning with global regulatory standards.

Aligning with Global Regulatory Trends

This planned alignment with global regulatory frameworks is essential as South Korea aims to position itself as a leading player in the international virtual asset market. By implementing these changes, the FSC intends to enhance the safety and reliability of the crypto ecosystem.

Conclusion: A Step Towards a More Regulated Virtual Asset Environment

The announcement by the Financial Services Commission marks a period of transformation for South Korea's approach to virtual asset regulation. By adopting a more structured and gradual methodology, the commission is poised to ensure that the burgeoning industry operates within a framework that supports innovation while safeguarding investors.

As the discussions unfold and specific implementations begin, stakeholders will be closely watching how these developments affect South Korea's standing in the global digital economy.