South Korea top financial regulator has announced plans to allow some institutions to sell certain cryptocurrency holdings, marking a major development in the country’s evolving cryptocurrency landscape.

The Financial Services Commission (FSC) announced that a limited group of entities—charities, universities, and cryptocurrency exchanges—will receive authorization to sell specific cryptocurrency holdings within the first six months.

In addition, the regulator aims to enable South Korean cryptocurrency exchanges to liquidate digital assets earned as fees on their platforms for fiat currency, enabling them to offset operational expenses, including salaries and taxes.

FSC to Launch Plans in the Second Half of 2025

The FSC’s latest decision reflects its efforts to accommodate the growing demand for institutional cryptocurrency trading in South Korea, where digital currencies are becoming increasingly prominent. The FSC cited increasing interest from institutional investors, including charities and universities, as a key factor behind the decision.

As a trial program, the new rules will enable 3,500 companies and professional investors to create authenticated accounts in the first six months of the year, allowing them to subsequently sell their holdings.

“In the second half of the year, a pilot test will be conducted for accounts for investment and financial purposes for some institutional investors with risk-taking capabilities,” the announcement added.

South Korea (FSC) Roadmap for Crypto Transactions

To prevent market manipulation and ensure a stable digital asset market, the FSC unveiled a phased plan to allow only corporations with at least 10 billion won ($6.8 million) in financial investment products to sell their cryptocurrency holdings.

The body will also closely monitor general corporations that aren’t professional investors and review their participation after the second stage of the pilot program. To prevent money laundering, the regulator is also developing trading guidelines to verify the purpose of digital asset transactions and the source of funds.

The FSC also aims to address concerns over price volatility and pump-and-dump schemes by collaborating with other financial authorities to review token listing standards, increasing transparency, and potentially imposing minimum circulating supply requirements.

The FSC’s move is a welcome development for cryptocurrency adoption in the country. It marks a shift from its previous stance of directing banks to limit institutional access to exchange accounts.