South Korea's Financial Services Commission Has Enacted New Guidelines Allowing Cryptocurrency Transactions

The South Korean Financial Services Commission has enacted a new set of guidelines, allowing the Asian country's citizens to engage in cryptocurrency transactions.

South Korea's Financial Services Commission (FSC) has unveiled new guidelines permitting non-profit organizations and virtual asset exchanges to engage in cryptocurrency transactions.

The latest development marks a landmark decision, setting June 2025 as the date when the new rules will kick in.

Commissioners will allow non-profit organizations to accept crypto donations or sponsorships, provided they maintain robust donation procedures, cooperate with authorities to prevent money laundering, and limit accepted donations to virtual assets listed on at least three Won-denominated exchanges. This will facilitate the immediate conversion of donated crypto assets into cash for beneficiaries.

Moreover, the commissioners granted permission for external audit corporations, operating for at least five years, to engage in digital asset transactions. However, the Commission will form a “Donation Review Committee” to supervise the corporations' transaction details and ensure complete compliance.

The Korean regulators finalized the new guidelines during the 4th Virtual Asset Committee session at the government complex in Seoul.

This decision follows the 'Roadmap for Corporations' participating in the virtual assets market, which the committee commenced during their previous meeting. Crucially, the committee also focused on revising the 'Best Practices for Trading Support' guidelines and reached significant conclusions.

The committee members, including the Commission's chairman, discussed the optimal methods for non-profit corporations to accept crypto donations. They also deliberated on the procedures external audit corporations should follow when engaging in digital asset transactions.

The move comes after a period of deliberation on the implications of non-profit organizations accepting crypto donations and the role of external audit corporations in crypto transactions.

Earlier this year, the South Korean political landscape saw candidates vying for the presidential election, which is set for June 3, 2025. The presidential hopefuls made noteworthy pledges to support the crypto industry.

These candidates are measuring the trend with the past US elections in mind, where Donald Trump's stance on crypto and blockchain technology during his campaigns contributed to his emergence as the Republican candidate and ultimately led to his win.