South Korea Set to Allow Non-Profits and Exchanges to Trade Crypto
New regulations from South Korea’s Financial Services Commission will enable non-profits and digital asset exchanges to sell cryptocurrency while imposing strict operational rules.
What to know:
- Starting June, South Korea’s Financial Services Commission (FSC) will permit non-profit organizations and virtual asset exchanges to sell their crypto assets.
- Exchanges can sell crypto only to gather operating funds, subject to daily limits, and they are prohibited from using their platforms for sales.
- The FSC has also reinforced listing policies, requiring local exchanges to eliminate “zombie” coins and enforce stricter criteria for listing memecoins.
The FSC aims to improve oversight while providing greater operational flexibility to these organizations. Non-profits must maintain five years of audited operations and create internal committees for donation vetting. Moreover, they can only accept crypto from at least three Korean exchanges and must sell received donations promptly.
Only top 20 cryptocurrencies by market cap eligible for sale, fulfilling anti-money laundering protocols. The revisions to listing standards will commence in June, with plans to extend regulations to corporations and institutional investors later this year.
