South Korea is tightening guidelines round digital asset transactions because it prepares to permit institutional gamers into its crypto market, introducing new tips for nonprofit crypto gross sales and stricter itemizing requirements for exchanges.
On Could 20, the Monetary Companies Fee (FSC) of South Korea stated it had finalized sweeping new measures throughout its fourth Digital Asset Committee assembly.
Set to take impact in June, the up to date guidelines enable each nonprofit organizations and digital asset exchanges to promote cryptocurrencies however below new compliance requirements.
Nonprofit entities will need to have at the least 5 years of audited monetary historical past to be permitted to obtain and promote digital asset donations. They can even want to determine inside Donation Evaluation Committees to evaluate the appropriateness of every donation and the liquidation technique.
To cut back dangers of cash laundering, all donations have to be routed via verified Korean received change accounts, with verification duties positioned on banks, exchanges and the nonprofits themselves.
Moreover, solely cryptocurrencies listed on at the least three main home exchanges will probably be eligible, and liquidation is anticipated to happen instantly upon receipt.
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Trade gross sales to be restricted
Crypto exchanges will probably be allowed to liquidate consumer charges paid in crypto, however solely to cowl operational prices. Gross sales will probably be capped at every day limits, sometimes not more than 10% of the full deliberate quantity.
Moreover, gross sales will solely be permitted for the highest 20 tokens by market cap throughout 5 won-based exchanges. Importantly, exchanges are barred from promoting tokens on their very own platforms to forestall conflicts of curiosity.
South Korea can also be tightening requirements for itemizing digital property. The revised guidelines goal to curb instability from sudden value spikes by requiring a minimal circulating provide earlier than a token is allowed to commerce and briefly proscribing market orders post-listing.
So-called zombie tokens (with low quantity and skinny market caps) and memecoins with out clear utility will now face extra scrutiny. For example, exchanges should delist tokens in the event that they fail to satisfy liquidity benchmarks or neighborhood engagement thresholds.
Beginning in June, exchanges and nonprofits can apply for real-name accounts to facilitate these gross sales. Later this 12 months, the FSC plans to increase real-name accounts to listed companies {and professional} buyers.
Cointelegraph contacted South Korea’s Digital Asset eXchange Affiliation for remark, however had not acquired a response by publication.
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South Korean candidates push pro-crypto agenda
South Korea’s Democratic Celebration chief Lee Jae-myung has proposed launching a stablecoin pegged to the Korean received, aiming to curb capital flight and bolster the nation’s monetary autonomy.
Talking at a latest coverage discussion board, Lee stated a won-based stablecoin might assist retain home wealth and scale back dependence on foreign-backed digital currencies equivalent to USDt (USDT) and USDC (USDC).
The initiative is a part of Lee’s broader push for digital asset reforms, which additionally consists of legalizing spot crypto exchange-traded funds (ETFs).
His rival, Kim Moon-soo of the ruling Individuals Energy Celebration, has additionally expressed assist for introducing spot crypto ETFs, signaling bipartisan momentum on the problem.
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