Limitations May Be Lifted: South Korea Proposes Allowing Financial Institutions to Hold Equity in Crypto Enterprises

Odaily Odaily reports that Kim Sung-jin, Director of the Virtual Asset Division at the Korea Financial Services Commission, stated during a parliamentary meeting that the government is simultaneously advancing stablecoin-related legislation—the second phase of the Digital Asset Basic Act—alongside the entry of institutional investors. The Financial Services Commission has promised to complete digital asset legislation within the year. If institutional entry is realized, the nine-year-old ban on financial companies holding equity in crypto enterprises could be lifted this year. This would allow financial institutions such as banks and securities firms to participate in virtual asset investments. Kim Sung-jin also noted that the authorities are studying the introduction of institutional brokerages and over-the-counter (OTC) trading intermediary mechanisms for the virtual asset market, similar to those in the stock market. At the same time, referencing the European Union’s approach, they are working to simplify the entry requirements for financial institutions into the virtual asset industry for functionally similar business areas.