South Korea is moving to relax restrictions on institutional crypto trading, marking a significant policy shift as the government aims to bolster its crypto sector. The Financial Services Commission (FSC) plans to gradually allow institutions access to local crypto exchanges, beginning with non-profit organizations. For years, institutional trading has been limited under existing banking guidelines, which permit only retail traders with verified accounts to engage in crypto trading. The FSC is collaborating with its Digital Asset Committee to implement this access in phases. This initiative is part of the broader Virtual Asset User Protection Act established last year to enhance investor safeguards and tackle unfair trading practices. The FSC also intends to introduce new regulations for stablecoins, crypto exchanges, and token listings. Ongoing reforms have faced challenges due to political instability, particularly following the recent impeachment of President Yoon Suk Yeol, which has delayed critical legislation regarding cryptocurrency offerings and corporate accounts.

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