South Korea sets June date for new crypto rules affecting 50 groups

South Korea will implement new regulations in June that allow nonprofit organisations and virtual asset exchanges to trade digital assets under specific conditions, according to an official report.

The Financial Services Commission (FSC) finalised guidelines during the fourth Virtual Asset Committee meeting in Seoul, aiming to streamline corporate participation and strengthen safeguards against market irregularities.

Nonprofit organisations will be permitted to receive and trade digital asset donations, but only if those assets are listed on at least three major Korean won (KRW) exchanges.

To ensure liquidity and transparency, these assets must be converted to cash immediately upon receipt.

The guidelines require nonprofits to establish an internal Donation Review Committee to assess the appropriateness of each donation and to prevent money laundering.

“In the case of the guidelines for the sale of virtual assets by nonprofit corporations receiving donations and sponsorships, it was decided to focus on establishing a sound donation culture and preventing money laundering through discussions with related organisations and expert task forces,” the FSC stated in its announcement.

Virtual asset exchanges will also be allowed to sell digital assets, but only to cover operational expenses and under strict regulations designed to prevent conflicts of interest and minimise market impact.

Eligibility is limited to registered virtual asset business operators.

The assets eligible for sale are confined to the top 20 by market capitalisation across the five major KRW exchanges.

Daily sales are capped at 10% of the total planned sale amount, and exchanges are prohibited from selling on their own platforms to avoid market manipulation.

Exchanges must have board approval for sales plans, disclose planned sales in advance, and submit reports after each sale detailing results and fund usage.

The FSC also announced plans to introduce customer verification measures for transactions between nonprofits and exchanges in May.

Further steps toward corporate integration, including real-name account issuance for listed corporations and professional investors, are expected in the second half of the year.

According to the FSC, these measures are intended to promote a transparent environment and reduce risks associated with digital asset transactions.