Will corporate investment in virtual assets be allowed?

Exchanges already busy devising related business strategies

By Jun Ji-hye

Discussions on allowing corporate accounts for virtual asset trading are expected to gain significant momentum as financial authorities and experts plan to hold a related meeting later this month.

Cryptocurrency exchanges are preparing various corporate business strategies in anticipation of corporate account permissions being granted within the year.

The virtual asset committee under the Financial Services Commission (FSC), the country’s top financial regulator, is set to hold its second meeting on Jan. 15, with the main agenda focusing on the approval of real-name accounts for corporations.

The 15-member committee is a policy and institutional advisory body chaired by the FSC vice chairman and composed of government officials from relevant ministries, legal professionals and information security experts.

The committee held its inaugural meeting on Nov. 6. After that, FSC Vice Chairman Kim So-young stated, “The committee primarily discussed real-name accounts for corporations, and an announcement is expected within the year.”

However, discussions were delayed due to political turmoil over President Yoon Suk Yeol’s short-lived imposition of martial law on Dec. 3, which prompted the National Assembly to pass an impeachment motion against him.

To trade on domestic cryptocurrency exchanges that support transactions in the Korean won, investors must have real-name accounts issued by banks partnered with the exchanges.

While individuals can easily open accounts for trading, banks have blocked the issuance of corporate accounts, citing the financial authorities’ anti-money laundering guidelines.

However, with the implementation of the Act on the Protection of Virtual Asset Users in July last year, the virtual asset market was brought under government regulation, accelerating discussions on allowing corporate accounts.

During the committee’s first meeting, it noted that blockchain and virtual asset technologies are increasingly being utilized across industries, and major countries such as the United States, members of the European Union and Japan have established corporate-centric virtual asset ecosystems.

This statement was interpreted as a positive signal from authorities regarding the approval of corporate accounts, leading to expectations that a relevant road map will be implemented starting in 2025.

However, on Dec. 4, the day after Yoon abruptly declared the emergency marital law, the FSC clarified in a statement that “the issuance of real-name accounts for corporations in the virtual asset sector will undergo further discussions” and that “specific plans have not yet been finalized.”

The delay was attributed to the uncertain political situation, given that financial authorities have since focused on stabilizing the volatile financial market amid the impeachment crisis. In this context, the virtual asset industry has inevitably been relegated to a lower priority.

Industry officials expect the approval of corporate accounts to significantly reshape the landscape of domestic virtual asset exchanges, based on the belief that increased trading volumes driven by corporations will become a major growth engine for exchanges.

If corporations enter the virtual asset market, it could open up diverse business opportunities, such as investing in cryptocurrencies, accepting cryptocurrency payments for sales revenue or launching new virtual asset-related ventures.

Exchanges are already busy devising related strategies.

Bithumb, the second-largest exchange by trading volume in Korea, has established a new corporate sales team.

“We are currently focused on securing the right talent, and the specific direction for the corporate sales team will be determined in the future,” a Bithumb official said.

Upbit, the leading exchange, is also internally formulating plans related to allowing corporate investments.

“We plan to prepare for corporate accounts operation in accordance with the guidelines to be issued by the financial authorities,” an official from Dunamu, which operates Upbit, said.