South Korea to Begin Lifting Ban on Institutional Crypto Trading

South Korea Lifts Ban on Institutional Crypto Trading 

Major Shift: South Korea is set to lift its long-standing ban on institutional crypto trading. First Phase: Non-profit associations, including charities and universities, can sell virtual assets in the first half of the year. Second Phase: Private companies and professional investors will gain full trading rights later in 2025.

Why South Korea Is Reversing the Ban 

Global Trend: Countries like the U.S. and EU are allowing institutional crypto trading, prompting South Korea to adjust its policy. Demand for Blockchain: Growing interest among South Korean businesses, especially in tech, for blockchain and digital asset services.

Regulatory Backdrop and Investor Protections 

The 2017 Ban: Initially, the government imposed the ban to tackle financial risks like money laundering and fraud. New Regulations: The Virtual Asset User Protection Act ensures robust investor protections while allowing institutional involvemen

Impact on Crypto Industry 

Increased Liquidity: Institutional investors will bring in significant capital, potentially stabilizing prices. Global Impact: South Korea's move could influence other countries still hesitant to allow institutional crypto trading. Future Outlook: This shift positions South Korea as a competitive player in the global digital asset market.