South Korea Lifts Ban on Institutional Crypto Sales

South Korea’s Financial Services Commission (FSC) lifted a ban on institutional cryptocurrency sales, effective June 2025, marking an inaugural event with significant participation from nonprofit organizations.

This regulatory shift permits nonprofits with audited financials to sell crypto, potentially influencing market liquidity and institutional participation in digital assets.

South Korea Approves Nonprofits for Crypto Sales

In May 2025, South Korea’s Financial Services Commission (FSC) finalized new rules, permitting nonprofits to sell cryptocurrency under strict conditions. The decision was announced in their fourth Virtual Asset Committee meeting.

Effective June 2025, institutional sales in South Korea are allowed for assets listed on three major domestic exchanges. This policy change emerged from the FSC’s efforts to integrate digital assets into the broader financial ecosystem.

Institutional Sales Expected to Boost Liquidity

The new regulations potentially increase liquidity in South Korea’s crypto market, allowing institutions to engage more actively. It signifies a pivotal shift in local crypto policy, aligning with global trends.

Market analysts speculate this move could bolster institutional trading of top cryptocurrencies like BTC and ETH, enhancing South Korea’s position in the digital asset space. Historical precedents suggest increased market stability following regulatory clarity.

Historic Policy Shift Opens Crypto Market to Institutions

Previously, South Korea restricted institutional sales of digital assets, focusing on exchange-owned assets. The recent regulatory easing opens avenues for institutional assets in the crypto market.

Experts from Kanalcoin indicate that this regulatory change could attract institutional investors, resulting in an uptick in market capitalization. They believe stricter compliance will support safer trading environments.

According to the Financial Services Commission (FSC), South Korea’s Regulatory Body, “these sweeping changes will allow nonprofits to legally sell crypto holdings and will open doors for institutional participation in the market.”