South Korea made significant changes regarding the sale of cryptocurrencies held by exchanges!

The South Korean Financial Service Commission (FSC) announced that starting from June, civil society organizations (NGOs) and virtual asset (cryptocurrency) exchanges can legally conduct the sale of cryptocurrencies.

According to Joseilbo’s news, this opportunity will be offered on the condition that institutions establish internal audit mechanisms and strengthen anti-money laundering investigations.

The 4th Virtual Asset Committee, chaired by FSC Vice President Kim So-young, took place on the morning of May 1 at the Seoul Government Complex. During the meeting, the draft guidelines for virtual asset sales for NGOs and exchanges were finalized as part of the “Corporate Participation Roadmap” announced at the previous meeting.

According to the new regulations, the sale of virtual assets will only commence with external audit institutions that have been operating for more than 5 years. However, the relevant institutions will be required to establish a “Donation Review Committee” to evaluate the suitability of donations and cash conversion plans in advance. At the same time, the purpose of the transactions and the sources of funds must also be verified.

In the guidelines for NGOs, the aim was to establish a strong donation culture and to prevent money laundering, especially concerning virtual assets obtained through donations and sponsorship. The assets subject to donation were limited to those traded on at least three Korean Won exchanges. Additionally, it became mandatory to convert these assets into cash immediately upon acquisition.

In order to prevent money laundering, while strengthening the verification of the purpose and sources of transactions, a cross-customer verification mechanism was established among banks, exchanges, and institutions by allowing only donations and transfers made through local won exchanges.

The guidelines for virtual asset exchanges focus on preventing conflicts of interest with users and minimizing market impact. Only virtual asset operators registered under the “specific financial transaction information law” will be able to sell, and these sales can only be made to cover operating expenses.

Assets that can be sold will be limited to the top 20 assets by market capitalization on the five major Korean Won exchanges. Additionally, the daily selling limit cannot exceed 10% of the total sales plan, and exchanges will be prohibited from selling on their own platforms.