Corporate Virtual Asset Accounts Opened... Gradual Allowance for Sales

Kim Byung-hwan, Chairman of the Financial Services Commission. Photo provided by the Financial Services Commission

The government has abruptly allowed corporate transactions of virtual assets. The government plans to gradually allow sales transactions starting in the first half of this year.

On the morning of the 13th, the Financial Services Commission held the '3rd Virtual Asset Committee Meeting' at the Government Complex Seoul to finalize discussions and review the results of examining whether to allow corporate virtual asset accounts. The meeting was attended by Kim So-young, Vice Chairman of the Financial Services Commission, along with related ministries such as the Ministry of Economy and Finance, the Ministry of Science and ICT, the Financial Supervisory Service, and private experts.

The Financial Services Commission decided to gradually allow corporate virtual asset accounts. According to the 'Roadmap for Corporate Participation in the Virtual Asset Market' announced by the Financial Services Commission on this day, the issuance of real-name accounts for sales for cash conversion will be allowed from the first half of this year. Initially, non-profit corporations receiving donations and sponsorships will be allowed to issue virtual asset accounts from the second quarter. The Financial Services Commission also plans to support the establishment of internal control standards related to virtual asset transactions for non-profit corporations.

Sales transactions on virtual asset exchanges will also be allowed. However, it is only possible to cash out virtual assets received as fees for use as operating expenses such as labor costs and tax payments. Vice Chairman Kim stated, "There are concerns about conflicts of interest with users due to large-scale sales of virtual assets," and "We will prepare joint sales guidelines for operators and strengthen monitoring through the Financial Supervisory Service."

Financial Services Commission's 'Roadmap for Corporate Participation in the Virtual Asset Market.' Data provided by the Financial Services Commission

In the second half of this year, trading of virtual assets for investment and financial purposes will be tentatively allowed for some institutional investors. Specifically, about 3,500 corporations registered as 'professional investors' under the Capital Markets Act, excluding financial companies, will be eligible. The Financial Services Commission stated, "Professional investors under the Capital Markets Act are already able to invest in the most risky and volatile derivatives, and these corporations have a high demand for blockchain-related business and investment."

Allowing virtual asset trading for general corporations is expected to take some time. The Financial Services Commission plans to analyze the current state of the virtual asset market and the results of the pilot trading allowance, and will consider allowing virtual asset trading for general corporations in the medium to long term once the second phase of legislation and related systems such as foreign exchange and taxation are established.

To implement the roadmap, the Financial Services Commission plans to form a task force (TF) with related organizations such as the Financial Supervisory Service, the Korea Federation of Banks, and the Digital Asset Exchange Joint Consultative Body (DAXA). Vice Chairman Kim stated, "We will continue discussions on the participation of financial companies in the virtual asset market in line with global regulatory trends," and "We will also expedite discussions on the Virtual Asset Act, including practical reviews of tasks such as stablecoins, within the Virtual Asset Committee."