South Korea Confirms New Regulation For Institutional Crypto Investments By Third Quarter

South Korea’s Financial Services Commission (FSC) announced plans to issue comprehensive guidelines for institutional cryptocurrency investment by the third quarter of 2025.

The FSC revealed its roadmap during a meeting with local crypto industry experts on Wednesday, 12 March 2025.

South Korea to issue institutional #crypto investment guidelines by Q3

The Financial Services Commission (FSC) confirmed plans to release investment guidelines for public companies and professional investors by Q3, with non-profits and exchanges set to receive guidance as early… pic.twitter.com/cNg7Iyimpb

— Satoshi Talks (@Satoshi_Talks) March 12, 2025

To bolster its crypto market, South Korea is accelerating regulatory efforts, as stated by FSC Vice Chairman Kim So-young.

EXPLORE: 10 Best AI Crypto Coins to Invest in 2025

South Korean Regulator Said US Prompted Increased Global Crypto Discussions

South Korea is opening the door for institutional crypto adoption.

New regulations will allow major funds to legally invest in digital assets.

The race is on—countries don’t want to be left behind. pic.twitter.com/cGsK82Per8

— Monitor (@Monitor_fi) March 12, 2025

Furthermore, the FSC Vice Chairman insisted that the US has prompted increased global crypto discussions. He also revealed that forthcoming guidelines will define ‘best practices’ for institutional crypto investments, specifically addressing trading, disclosure, and reporting requirements.

The upcoming guidelines will outline “best practices” for institutional crypto investment, including standards for cryptocurrency trading, disclosure requirements, reporting obligations and enhanced anti-money laundering protocols.

Kim also talked about the importance of strengthened anti-money laundering and cybersecurity measures, urging local banks and crypto exchanges to enhance their capabilities in these areas.

Under current regulations, users of crypto exchanges must verify their accounts with real-name bank accounts, maintaining a level of transparency in the market.

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Will South Korea Establish Bitcoin Reserve?

The possibility of a Bitcoin reserve is actively being discussed in the country.

“If the US moves toward holding bitcoin as part of its reserves, South Korea will need to respond with a clear policy,” said CEO of blockchain firm xCrypton, Kim Jong-seung, at a recent seminar.

On 6 March 2025, The Korea Herald reported that Representative Kim Min-seok, who leads the Democratic Party’s policy preparation committee for a potential snap presidential election, indicated that his party would reshape the country’s nascent crypto policy should it come to power.

Stressing that blockchain finance and virtual assets will play an increasingly significant role in economic strategy, Rep Kim said, “It is essential to discuss virtual assets and blockchain finance.”

Key Takeaways

The institutional investment guidelines are part of a larger regulatory framework being developed in South Korea.

This announcement builds on the South Korean regulator’s earlier statement that it would gradually lift the de facto ban preventing institutional investors from participating in the cryptocurrency market.