South Korea to Allow Crypto Sales by Nonprofits and Exchanges From June 1
- South Korea permits nonprofits and exchanges to sell crypto legally starting June 1.
- To curb volatility, the FSC restricts crypto sales to the top 20 coins by market cap.
- Nonprofits must pass audits and form review committees to sell donated digital assets.
South Korea has announced new regulations allowing nonprofit organizations and cryptocurrency exchanges to sell digital assets legally starting June 1, 2025. The Financial Services Commission (FSC) introduced this decision during a meeting of its virtual asset committee on May.
The implemented rules boost market transparency functions and anti-money laundering capabilities while supporting responsible market behavior.
Key Guidelines for Nonprofits and Crypto Exchanges
Nonprofit organizations can now sell cryptocurrency donations if they fulfill outlined requirements. Existing nonprofit organizations need to have five years of operation and pass an external audit. To maintain responsible digital asset management, the donation and sale process needs oversight by a Donation Review Committee.
The regulations allow sales of cryptocurrencies listed on at least three Korean exchanges, like Bitcoin and Ethereum. Under the regulations, all platforms must refrain from permitting trades involving zombie coins or meme tokens.
The top 20 digital assets based on market capitalization will be the only currencies cryptocurrency exchanges can sell to generate operational funding. The Exchanges must adhere to restrictions, such as a daily sales cap of 10% of the planned volume. In addition, exchanges must obtain board approval of their sales plans while being required to publish reports on the proceeds.
Measures to Curb Market Manipulation and Speculation
The new guidelines address speculative practices and market manipulation, particularly concerning zombie coins and meme coins. Exchanges are now required to suspend trading support for tokens with low liquidity or market capitalization, such as those with an average daily turnover below 1% or a global market cap under 4 billion won ($2.79 million) for over 30 consecutive days. The measures also include temporary restrictions on market orders for newly listed tokens during initial trading periods to prevent speculative surges.
The FSC implemented these rules intending to stop price manipulation while preventing market disturbances that protect institutional investors and retail traders in their trading environment. Customer verification protocols launched by the FSC are scheduled for implementation in May to strengthen anti-money laundering actions.
South Koreas Crypto Regulatory Shift
The regulatory change emerges as South Korea faces market turbulence and increasing concern about unregulated cryptocurrency trading practices in its market. The new rules establish a restricted structure supervising digital assets to diminish speculative trading dangers and fraudulent conduct. These new regulatory standards in South Korean cryptocurrency markets could establish an approach for other countries considering similar measures.
According to the FSC, upcoming planned changes include stablecoin regulatory frameworks and proposed guidelines for Bitcoin spot ETFs. Moreover, the developments hint at South Koreas commitment to becoming a leading center for the sustainable cryptocurrency industry investment.
Related Reading | KuCoin Plans Return to South Korea After Regulatory Compliance Success
Read more: https://www.tronweekly.com/south-korea-to-allow-crypto-sales-by-exchanges/
Text source: TronWeekly
