FSC unveils roadmap for corporate entry into virtual asset market
Industry anticipates stabilization and mitigation of "Kimchi Premium"
The Financial Services Commission presented a roadmap to open the domestic virtual asset market to corporations, and the industry welcomed the move. There is an expectation that volatility will be mitigated and stability will be enhanced once institutional investors actively engage in virtual asset trading.
According to the industry on the 14th, the Financial Services Commission plans to pilot the allowance of virtual asset trading from the second half of the year for corporations registered as listed companies and professional investors under the Capital Markets Act, excluding financial companies. The total number of eligible corporations is about 3,500.
In the first half of the year, the issuance of real-name accounts for selling with the purpose of cashing out will be permitted. For non-profit corporations receiving donations and sponsorships, this will ensure transparency in fundraising and utilization. Designated donation organizations and universities under the supervision of the relevant authorities will be able to obtain corporate real-name accounts starting from the second quarter. Additionally, virtual asset exchanges will be able to convert virtual assets received as fees into cash to cover operating expenses such as personnel costs and tax payments.
The industry expressed a welcoming stance toward this roadmap, anticipating improvements in stability and liquidity with the participation of institutional investors. In particular, it is expected that the "Kimchi Premium" phenomenon, which refers to the price difference of virtual assets between domestic and overseas markets, will also be alleviated.
A representative from a virtual asset exchange said, "We expect that corporate participation will help reduce the high volatility of the virtual asset market and the Kimchi Premium."
On the other hand, there were opinions expressing regret that the corporations allowed to trade are limited. The representative said, "In major countries, there are almost no restrictions on corporate investments. In the United States, not only listed companies but also financial institutions invest in coins, and I believe that only when this is opened will corporate accounts truly be permitted."
Another representative said, "Compared to global trends, there is some disappointment in terms of speed. It seems to be because the focus has been on user protection and anti-money laundering."
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