South Korea has revealed plans to slowly integrate institutional investors into the Bitcoin and crypto market amidst a friendlier stance on digital assets.

A report from local news outlet Yonhap uncovered this shifting sentiment. The Wednesday report stated that South Korea’s top regulatory agency, the Financial Services Commission (FSC), will start allowing crypto investment among institutions.

Before now, only retail investors have had uncensored access to crypto investment. Although South Korea has not officially passed any embargo, it has discouraged institutions from meddling with cryptocurrency.

The FSC to Slowly Allow Institutional Bitcoin Exposure

Per the report, the top regulatory body will collaborate with the Digital Asset Committee, its advisory sector on cryptocurrency. The FSC will introduce institutional players to crypto trading in phases, kicking off with non-profit organizations.

Furthermore, the South Korean regulator will enact new regulations, building on its already existing framework. For context, it passed a Virtual Asset User Protection Act in July 2024 to protect investors from bad actors in the sector. This came nearly two years after Terra, founded by South Korea’s Do Kwon, collapsed, leading to billions in losses.

Moreover, the FSC will introduce new postulations to the framework, including stablecoin, crypto exchange, and token listing regulations. The regulator would also enact laws scrutinizing the eligibility of major shareholders in a digital asset firm.

South Korea to Encourage Digital Assets

The FSC’s new outlook followed a global warming toward digital assets. Notably, while running for power, the now-impeached President Yoon Suk-yeol promised to create a conducive environment for cryptocurrency. However, he had yet to enact the regulation before the notorious December political tussle that led to his impeachment.

Meanwhile, South Korea’s efforts to foster crypto adoption mirror those of other countries. For instance, Thailand recently announced plans to launch a Bitcoin payment pilot program.

Also, Russia has allowed crypto mining and confirmed the use of Bitcoin for international trade settlement. This came after its president, Vladimir Putin, stated that no one can ban cryptocurrency.