South Korea Enforces Stricter Crypto Regulations for Institutional Investments

South Korea is enhancing its regulatory measures for crypto exchanges and banks as it lifts a ban on institutional crypto investments. From June, certain non-profit organizations and regulated crypto exchanges will be able to sell crypto assets in the country. These entities must adhere to strict know-your-customer (KYC) procedures to prevent money laundering. The Financial Services Commission (FSC) mandates that the sources of funds and transaction purposes must be thoroughly verified for new institutional clients. Further guidelines are expected to be issued by the Korea Federation of Banks and Digital Asset Exchange Association. The country is preparing to allow publicly listed companies to trade on crypto exchanges by late 2025, accompanied by additional anti-money laundering requirements.