South Korea’s Milestone in Institutional Digital Asset Trading
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A Historic Leap for Institutional Cryptocurrency Transactions in South Korea
South Korea has recently marked a significant milestone in the realm of digital assets by conducting its first institutional cryptocurrency transaction, coinciding with the strategic lifting of a ban on such activities. This momentous event occurred just two days before the anticipated presidential elections scheduled for June 3, 2025.
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Inaugural Institutional Cryptocurrency Sale
The first institutional sale of digital assets in South Korea was successfully executed by World Vision, a prominent non-profit entity. Dunamu, the parent company of the popular crypto exchange Upbit, proudly announced its support for World Vision in conducting this historic transaction. The organization sold 0.55 Ether (ETH) for 1.98 million won, equivalent to approximately $1,437.
Commencing June 1, 2025, non-profit organizations, including educational institutions and charities, have been given the green light to engage in crypto sales via local exchanges. This initiative is a pivotal component of the Financial Services Commission’s (FSC) strategic roadmap aimed at integrating corporate participation in the digital asset market.
Regulatory Evolution and Institutional Participation
In a groundbreaking move, the FSC’s Virtual Asset Committee announced plans to incrementally lift the ban on institutional investment in digital assets. This involves the introduction of real-name accounts for institutions, with non-profits being the initial beneficiaries in the second quarter of 2025.
In South Korea, real-name accounts are a prerequisite for engaging in crypto investments. These are strictly regulated under the Specified Financial Transaction Information Act, which mandates verification for digital asset investments. Despite the absence of explicit legal restrictions, banks were previously advised against issuing these accounts to corporations, thereby curtailing institutional crypto trading opportunities.
However, Dunamu’s innovative approach enabled World Vision to link its corporate account at K Bank with its Upbit account. This facilitated the sale of Ethereum originally received as donations three months prior through Upbit’s KRW market.
Empowering Non-Profits Through Digital Assets
In March, Dunamu and World Vision launched an impactful digital asset donation campaign. This initiative targeted Upbit users, encouraging them to contribute towards purchasing essential school supplies for underprivileged teenagers. The campaign aimed to provide school uniforms, backpacks, and other necessities for the upcoming academic year.
Upbit’s parent company remains committed to supporting non-profit organizations in liquidating digital asset donations. This commitment is aligned with existing guidelines set forth by financial authorities and industry standards, fostering a robust virtual asset donation culture.
Moreover, preparations are underway for the second phase of the FSC’s roadmap. This phase will enable qualified publicly traded companies and professional investors to participate in the digital asset market by the third quarter of 2025.
Anticipating a New Chapter for Digital Assets in South Korea
This significant advancement in the South Korean cryptocurrency landscape coincides with the impending presidential election, which seeks to appoint a successor to the impeached president Yoon Suk-yeol. Despite the election’s outcome, digital asset investors in South Korea are poised to benefit from favorable policies, as both major candidates have pledged to implement industry-supportive measures to cater to the approximately 18 million digital asset investors in the nation.
According to Bitcoinist, Kim Moon-soo, the candidate representing the People Power Party (PPP), has vowed to authorize spot crypto Exchange-Traded Funds (ETFs) if victorious. Kim is determined to advocate for the approval of digital asset-based investment products and policies aimed at enhancing middle-class wealth accumulation.
Kim’s campaign emphasizes the increasing number of young digital asset investors as a driving force behind their commitment to incorporating spot ETFs and institutionalizing digital assets within their policy agenda.
Meanwhile, Lee Jae-myung, the Democratic Party of Korea (DPK) candidate, has also pledged to introduce spot crypto ETFs and reduce transaction taxes associated with digital assets. Lee promises to “establish a secure virtual asset investment environment through an integrated surveillance system” while “expanding the cryptocurrency market and enhancing investor protection simultaneously.”
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