Restrictions may be lifted: South Korea to allow financial institutions to hold equity in crypto enterprises

Odaily Planet Daily News: Kim Sung-jin, Director of the Virtual Asset Division at the Financial Services Commission of South Korea, stated at a parliamentary meeting that the government is simultaneously advancing stablecoin-related legislation—namely the second phase of the Digital Asset Basic Act—alongside institutional investor entry. The Financial Services Commission has committed to completing digital asset legislation within the year. If institutional entry is realized, the nine-year ban on financial companies holding equity in crypto enterprises could be lifted this year, allowing banks, securities firms, and other financial institutions to participate in virtual asset investments. Kim Sung-jin also stated that the government is studying the introduction of institutional brokers and over-the-counter (OTC) trading intermediary mechanisms similar to those in the stock market for the virtual asset market, while also referencing the EU's practices to simplify the entry requirements for financial institutions entering the virtual asset industry in areas with functionally similar business operations.