The Financial Services Commission of South Korea has announced that, starting in June, non-profit organizations and virtual asset exchanges will be permitted to sell their cryptocurrency holdings under new regulations. These rules aim to enhance oversight while providing operational flexibility. In February, the FSC, the country's primary financial regulator, disclosed plans to lift a 2017 ban that restricted corporations and banks from cryptocurrency trading to prevent excessive speculation. The FSC has now finalized the details of this process.
Under the new framework, non-profit organizations must adhere to stringent conditions, including at least five years of audited operations and the formation of internal committees to vet donations. They will only be allowed to accept cryptocurrencies listed on at least three Korean won-based exchanges and will generally be required to sell donated tokens immediately. Exchanges, on the other hand, will be allowed to sell cryptocurrency solely to raise operating capital, facing daily sales limits and being prohibited from selling through their own platforms. Only the top 20 coins by market capitalization traded on major Korean exchanges will be eligible for sale.
All transactions must comply with the same anti-money laundering standards applied to other virtual asset service providers. The FSC has also tightened listing rules, requiring local crypto exchanges to exclude 'zombie' coins with low trading volume or market capitalization and set higher thresholds for listing memecoins, such as user base or transaction history requirements. The goal of these regulations is to reduce sudden price fluctuations and enhance investor protection. The updated listing standards will take effect in June, with plans to extend these rules to corporations and institutional investors later this year.