South Korea plans to introduce new guidelines in the third quarter to lift the ban on institutional investment in cryptocurrencies

According to The Block, South Korea's financial regulator announced on Wednesday that it plans to release comprehensive guidelines for institutional cryptocurrency investment in the third quarter. The Financial Services Commission made this announcement at a meeting with local crypto industry experts. Although investment guides for listed companies and professional investors are expected to be introduced in the third quarter, the Financial Services Commission stated that its goal is to launch investment guides for non-profit organizations and cryptocurrency exchanges ahead of schedule in April.

The Financial Services Commission first announced in January that it would gradually lift the de facto ban on institutional investors investing in cryptocurrencies. Last month, the regulator revealed that it intends to first allow charities and universities to sell their cryptocurrency assets in the second quarter. The forthcoming detailed guidelines further consolidate South Korea's shift towards cryptocurrencies, no longer strictly opposing crypto assets entering traditional financial markets.

Meanwhile, the Financial Services Commission has also begun formulating a second set of rules for a two-part cryptocurrency regulatory framework; the first set was launched last year. The second part of Cryptocurrency Law will focus on stablecoins and regulating cryptocurrency business owners.