South Korea to Let Non-Profits, Exchanges Sell Crypto Under New FSC Rules
South Korea’s financial regulator, the Financial Services Commission (FSC), is implementing significant changes to its cryptocurrency regulations, effective June 2025. These changes aim to balance stricter oversight with operational flexibility for non-profit organizations and virtual asset exchanges.
A key development is the lifting of a 2017 ban that prohibited corporations and banks from trading cryptocurrencies. This ban, implemented to curb speculative activity, is now being partially reversed. Non-profit organizations will be permitted to sell their cryptocurrency holdings, but under stringent conditions. These include a minimum of five years of audited operations, the establishment of internal donation vetting committees, and acceptance only of cryptocurrencies listed on at least three Korean won-based exchanges. Furthermore, donated tokens must generally be sold immediately.
Virtual asset exchanges will also be allowed to sell cryptocurrencies, but solely to secure operating capital. Daily sales limits will be imposed, and self-platform sales are prohibited. Only the top 20 cryptocurrencies by market capitalization, traded on major Korean exchanges, will be eligible for sale. All transactions must adhere to the same anti-money laundering standards applied to other virtual asset service providers.
The FSC is concurrently strengthening listing regulations for crypto exchanges. “Zombie” coins, characterized by low trading volume or market capitalization, will be filtered out. Higher listing requirements for memecoins will be introduced, focusing on user base and transaction history to mitigate abrupt price fluctuations and bolster investor protection. These updated listing standards also take effect in June.
The FSC’s plans extend beyond non-profits and exchanges. The regulator intends to broaden these revised regulations to encompass corporations and institutional investors later in 2025, as previously announced in February. This phased approach suggests a careful strategy to integrate cryptocurrencies more formally into the South Korean financial system while mitigating potential risks. The overall goal is to create a more regulated and secure environment for cryptocurrency activity within the country.
