South Korea’s Financial Services Commission (FSC) has taken an important step in requesting approval for institutional investments to be directed to crypto assets. This development is an important signal for the crypto market, especially when considering strengthening cooperation between financial holding companies and fintech companies across South Korea.
Approval of Institutional Crypto Investments
FSC Director Kwon Dae-young emphasized the need for discussion on establishing listing standards. According to a recent report, Kwon stated that the agency will work to create a framework that is compatible with global standards, and that they plan to include codes of conduct for virtual asset exchanges.
“We need to have discussions about establishing listing standards,” Kwon Dae-young said.
How Institutional Virtual Asset Trading Works
South Korea’s FSC plans to introduce a system to review shareholder eligibility and add social credit requirements. It also aims to improve the screening criteria of assets such as meme coins based on volatility or token fluctuations.
FSC’s Other Plans
While companies are currently allowed to hold a maximum of 5% shares in companies that are not parent companies, this limit is planned to be increased to 15%. This change could increase the likelihood of greater share ownership, reflecting greater control over operations.
Additionally, the FSC plans to provide flexibility in consignment business arrangements by activating data sharing within financial holding groups and to link individual savings accounts (ISA) and medical savings account functionality.
Impact on Crypto
This decision is seen as a huge recognition and adoption by the crypto community. Directing institutional investments into crypto assets can increase liquidity by providing greater inflows into digital assets and strengthen future bullish expectations.
However, this development may directly lead to fluctuations in the crypto market. Bitcoin $95,447.5 The price was observed to lose value during the widespread crypto market crash.
With these developments, South Korea’s regulations on the crypto market may support the adoption and integration of digital assets. Investors and companies should closely monitor the opportunities and potential challenges these changes will bring to the crypto ecosystem.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
