Seoul: The Financial Services Commission (FSC) said Thursday it will allow corporations to open bank accounts for transactions of cryptocurrencies in the second quarter of the year. But it will still ban financial companies from participating in the virtual asset market, which means their listing of virtual asset-based exchange trade funds (ETFs) will be also prohibited for the time being.
According to Yonhap News Agency, the FSC stated that starting in the second quarter, nonprofit organizations, such as universities and crypto asset exchanges, will be allowed to open bank accounts for the purpose of selling such assets. Beginning in the second half of the year, some 3,500 listed firms and licensed investors will be allowed to trade crypto assets.
Financial companies, such as banks and brokerage houses, will be banned from selling or buying crypto assets as the FSC needs to further assess potential risks when they participate in the market. Consequently, they cannot sell crypto ETFs as they are required to hold virtual assets for the sale of such financial products.