South Korea’s Financial Services Commission (FSC) announced plans to permit charities, universities, and crypto exchanges to sell cryptocurrency holdings received as donations, marking a significant shift in the country’s regulatory stance. The decision comes in response to increasing institutional interest in crypto trading and aims to align South Korea with global trends in corporate digital asset participation.
The FSC’s announcement follows its recent policy shift to gradually introduce institutional investors to cryptocurrency markets. In the second half of the year, the regulator plans to conduct pilot tests allowing approximately 3,500 publicly listed firms and professional investors to open real-name accounts for crypto investments. This phased approach reflects the government’s strategy to expand corporate participation while ensuring regulatory safeguards remain in place.
A New Era for Charities and Universities
The FSC confirmed that non-profit organizations, universities, and crypto exchanges will be allowed to sell their digital asset holdings in the second quarter of 2025. Many universities and charitable organizations have received crypto donations but have faced challenges liquidating these assets due to restrictive regulations. The new policy provides them with a formal avenue to convert these donations into cash for operational and philanthropic purposes.
Crypto exchanges will also be permitted to sell digital assets received as transaction fees. This provision aims to help platforms cover operational expenses, including salaries and taxes. However, concerns about potential conflicts of interest stemming from mass sales by exchanges have led the FSC to propose a “Sales Guideline” that operators must adhere to before being granted permission.
Under South Korea’s current financial regulations, only verified retail investors with real-name accounts can engage in crypto trading. The FSC has previously directed banks to block institutional participation in the crypto market. This new development signals a gradual easing of these restrictions, aligning with global regulatory trends toward legitimizing corporate digital asset transactions.
Phased Institutional Participation
A key component of the FSC’s plan is the phased introduction of institutional trading. According to the regulator’s press release, the second half of 2025 will see the launch of pilot tests for 3,500 publicly listed companies and professional investors registered under the Capital Market Act. This step is expected to create a more structured framework for corporate engagement in digital assets, supporting South Korea’s broader financial innovation goals.
Vice Chairwoman Kim So-young presided over the 3rd “Virtual Asset Committee” meeting on February 13, where government officials and private sector representatives reviewed the policy changes. The committee also discussed ongoing efforts to refine transaction support mechanisms and regulate token securities (STOs), which are becoming increasingly prominent in digital finance.
South Korea’s growing openness to institutional crypto participation reflects a shift in market dynamics. With the country home to some of the world’s largest crypto exchanges, including Upbit, regulatory advancements will likely impact both domestic and international crypto markets. With South Korea opening its doors to institutional crypto players, the nation could become a leader in regulated digital finance. Will this spark a new wave of mainstream crypto adoption?
