South Korea tightens the rules concerning digital asset transactions as it is preparing to allow institutional players to present themselves to its cryptography market, introducing new directives for non -profit cryptography sales and stricter registration standards for exchanges.
On May 20, the South Korea Financial Services Commission (FSC) said at its fourth meeting of the virtual asset committee which he had finalized with new measures.
Scheduled to take effect in June, the updated rules allow both non-profit organizations and exchanges of virtual assets to sell cryptocurrencies, but according to new standards of conformity.
Non -profit entities must have at least five years of audited financial history to receive and sell virtual asset donations. They will also have to establish internal donation review committees to assess the relevance of each donation and the liquidation strategy.
To reduce the risk of money laundering, all donations must be sent via verified Korean exchange accounts, with verification responsibilities placed on banks, exchanges and non-profit organizations themselves.
In addition, only the cryptocurrencies listed on at least three major interior exchanges will be eligible and the liquidation should occur immediately after reception.
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Exchange sales to restrict
Crypto exchanges will be authorized to liquidate the user fees paid in crypto, but only to cover operational costs. Sales will be capped at daily limits, generally no more than 10% of the total amount planned.
In addition, sales will only be authorized for the 20 best tokens by market capitalization in five WONT exchanges. Above all, exchanges cannot sell tokens on their own platforms to prevent conflicts of interest.
South Korea also tightens standards to list digital assets. The revised rules aim to limit the instability of sudden price peaks by requiring a minimum supply in circulation before a token is authorized to exchange and temporarily restrict market orders after the list.
So-called zombies tokens (with low volume and thin stock market capitals) and clear utility mecoins will be faced with a more meticulous examination. For example, exchanges must set up tokens if they fail to comply with liquidity references or community engagement thresholds.
From June, non -profit exchanges and organizations can request real accounts to facilitate these sales. Later this year, the FSC plans to extend real name accounts to listed companies and professional investors.
Cointelegraph contacted Digital Asset Exchange Association of South Korea for comments, but had not received an answer by publication.
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South Korean candidates are pushing a Pro-Crypto program
The leader of the Democratic Party of South Korea, Lee Jae-Myung, proposed launching a stablecoin fixed to the Korean won, aimed at braking the leak of capital and strengthening the country’s financial autonomy.
Speaking in a recent political forum, Lee said that a stable Won -based stable could help maintain inner wealth and reduce dependence on digital currencies supported abroad such as USDT (USDT) and USDC (USDC).
The initiative is part of Lee’s wider thrust for digital asset reforms, which also includes the legalization of the negotiated funds in exchange for crypto (ETF).
His rival, Kim Moon-Soo, of the Power Party Power Party, also expressed his support for the introduction of FNB Crypto Spot, signaling a bipartite momentum on the issue.
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