South Korea’s financial watchdog announced new rules that will allow non-profit organizations and virtual asset exchanges to sell their crypto holdings starting in June. The Financial Services Commission (FSC) revealed plans to lift a ban imposed in 2017 that restricted corporations and banks from trading cryptocurrencies in order to avoid “overheated speculation.” The FSC agreed on the details of the process earlier this month.
Under the new framework, non-profits must meet specific conditions, including at least five years of audited operations and the establishment of internal committees to vet donations. They will only be able to accept crypto listed on at least three Korean won-based exchanges and will generally be required to sell donated tokens immediately.
Exchanges will also be permitted to sell crypto to raise operating capital, with daily sale limits and a ban on selling through their own platforms. Only the top 20 coins by market capitalization traded on major Korean exchanges will qualify for sale, and all transactions must meet anti-money laundering standards.
The FSC also tightened listing rules for local crypto exchanges, requiring them to filter out “zombie” coins with low trading volume or market cap, and set higher bars for listing memecoins. These measures are intended to reduce sudden price spikes and increase investor protection.
The updated listing standards will take effect in June, with plans to expand these rules to corporations and institutional investors later this year.
