The Financial Services Commission (FSC) announcement of key changes in 2025

Published Date: January 9, 2025

The FSC has announced significant regulatory changes for virtual assets and fintech ​development as part of their 2025 business plan.

Virtual Asset Trading

The FSC will implement a gradual approach to permit corporate cryptocurrency ​trading. This marks a significant shift from current practices where banks have been ​discouraged from issuing corporate accounts for virtual asset trading. Initially, this ​permission will be extended to non-profit organizations through real-name account ​issuance.

Regulatory Framework Development

Building upon the previously implemented Virtual Asset User Protection Act, the FSC ​is advancing to a second phase of regulations. These new regulations will specifically ​address virtual asset issuance and distribution mechanisms.

Enhanced Oversight Measures

FSC has outlined several key oversight initiatives:

• Introduction of a comprehensive major shareholder eligibility screening system for ​virtual asset businesses
  
• Implementation of social credit requirements within the screening criteria
  
• Strengthening of self-regulation protocols, particularly regarding meme coins
  
• Development of advanced forensic capabilities to better identify and investigate ​unfair trading practices
  

Fintech Innovation Support

To foster growth in the fintech sector, the FSC will:

• Provide enhanced support for scaling up innovative financial services
  
• Consider implementing exclusive operating rights for first-time innovative ​sandbox applicants
  
• Reduce existing restrictions on financial holding companies' investments in ​fintech enterprises
  

The FSC emphasizes that these regulatory changes are designed to align with global ​regulatory standards while promoting innovation within South Korea's financial ​sector.

Sources: Yonhap News