In this post:
- Non-profit organizations and virtual asset exchanges in South Korea will be permitted to sell virtual assets starting in June 2025.
- Revised best practices will be implemented to prevent price manipulation and ensure stability in the market, particularly for newly listed virtual assets.
- The Financial Services Commission also plans to establish customer verification measures for transactions between non-profit corporations and exchanges by May 2025.
From June, non-profit corporations and virtual asset exchanges in South Korea will be allowed to sell virtual assets as they will be able to issue virtual asset selling trading accounts.
As of May 1, draft guidelines were finalized by Vice Chairman Kim So-young of the Financial Services Commission, who held the 4th Virtual Asset Committee at the Government Complex Seoul.
Also, due to concerns raised about user damage, such as “listing beams” when supporting transactions (listing) in the virtual asset market, there were discussions on the revision of the “Best Practices for Transaction Support.”
South Korea sets rules defining corporate participation in the virtual asset market
The first measure states that in order to secure an appropriate internal control system and transparency, virtual asset sales will be restricted to “outside audit corporations with more than 5 years of business.”
After that, a “Donation Review Committee” (tentative name) must be established within the corporation to review the appropriateness of donations and plans for cashing in advance. The purpose of transactions and sources of funds must also be confirmed and verified.
The donation target is limited to virtual assets traded on three or more KRW exchanges, and the donated virtual assets are to be cashed out immediately upon receipt, because the smooth cashing out of virtual assets is a prerequisite for the appropriate use of donated virtual assets.
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In addition, only donations and transfers through domestic KRW exchange accounts are allowed, so that banks, exchanges, and corporations can perform customer verification in an overlapping manner.
Rules for selling virtual assets on virtual asset exchanges
The guidelines created for selling virtual assets on virtual asset exchanges are all about preventing conflicts of interest with users by minimizing market impact.
They state that only exchanges that have been reported as virtual asset business operators as part of the Act on Reporting and Use of Specific Financial Transaction Information are eligible to sell virtual assets, and only sales for the purpose of covering operating expenses are permitted.