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As outlined in a recent report from Hanguk Kyungjae, South Korean financial regulators intend to allow universities to commence trading cryptocurrencies by 2025. The FSC is also likely to allow local government authorities to offer crypto assets as part of the initiative.
Moreover, the FSC is expected to allow corporations to set up corporate crypto wallets at some point. The commission is, as per sources, set to unveil a “Roadmap for Allowing Corporations to Open Virtual Asset-Won Accounts” in the coming weeks.
Critics blamed South Korea for being passive and failing to move our companies towards doing crypto strategies sooner than those of the US, Europe and Japan. Many South Korean companies view the use of their balance sheets to invest in crypto as inspired by foreign companies that have successfully enhanced asset value through the purchase of Bitcoin.
Universities in South Korea to Embrace Crypto Trading Next Year
South Korea’s laws currently do not allow corporations to purchase Bitcoin or any other cryptocurrencies. However, the Financial Services Commission (FSC) is supposedly devising a strategy to change that.
The design of the FSC incorporates its aim to begin loosening these restrictions on further holders in a staggered approach starting with related Universities, Schools, and local government organs. Several of the more prominent universities were able to benefit from crypto donations a couple of years ago but they never have been able to utilize them as cash due to legal constraints.
Also, because there is no such legislation in place that prevents public entities or corporates from utilizing accounts of wallets integrated with banking. Still, local banks were specifically told to allow opening such accounts only to natural persons.
Educational Institutions Set to Sell WEMIX Tokens
Seoul National University (SNU) and other educational institutions that have managed to hold on to their altcoins may soon get the opportunity to monetise their assets. In 2022, the local gaming firm WeMade allocated part of its WEMIX (WEMIX) tokens to the educational establishment.
Since that moment, SNU has made mention of the Ministry of Education and the Financial Intelligence Unit (FIU) on various occasions seeking clearance to offload the tokens. However, the requests have always been turned down by the Financial Services Commission (FSC) who feared that companies would begin to market their coins by donating them to institutions if sales are allowed.
SNU is estimated to control a net worth of around 800 million won, which in today’s currency translates to over $566,000, as WEMIX tokens.
Banking Sector Has the Final Say
The last steps of the roadmap will open the crypto market to the banking sector and other financial companies. Nevertheless, there’s no scarcity of risks and so the FSC is also trying to implement risk mitigation strategies in its regulations.
One measure that has been suggested is that stock exchange listing firms should restrain their capital exposure to crypto to a small percentage of their total capital. The goal of this action is to prevent tragic consequences like the advent of stocks of Bitcoin themed companies, which are expected to create an imbalance in the market.
At the moment, the only crypto wallets that South Korean public entities possess through which fiat currency can be traded are the Prosecution Service and the National Tax Service. These are hardly used for any other purpose apart from selling crypto assets that have been used for tax avoidance and criminal activities.
The ambiguous position which is currently being taken by South Korean authorities concerning cryptocurrency is a strong indication of fundamental changes in the country’s finance and academic spheres. In five years’ time, universities and corporations as well as local government structures may have access to the crypto space which may enhance creativity and further investment prospects.
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