South Korea Strengthens Crypto Regulations Before Institutional Entry

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South Korea is tightening its regulations on digital asset transactions in anticipation of institutional participation in its crypto market.

This includes new guidelines for nonprofit crypto sales and more rigorous listing standards for exchanges.

On May 20, during its fourth Virtual Asset Committee meeting, the Financial Services Commission (FSC) announced comprehensive new measures.

Effective in June, these rules will allow nonprofit organizations and virtual asset exchanges to sell cryptocurrencies under stricter compliance standards.

Nonprofits must have at least five years of audited financial records to handle virtual asset donations and set up Donation Review Committees to evaluate each donation and its liquidation strategy.