FSC: Corporate participation in virtual assets to be pursued as quickly as possible, contingent on market safeguards

South Korea’s Financial Services Commission (FSC) said it will move forward with allowing corporations to participate in the digital-asset market, conditional on putting in place market-stability measures and internal control systems, and will review the matter as quickly as possible.

Hong Jae-seon, an assistant director at the FSC, made the remarks while serving as a panelist at the “Academic Conference on Opening the Digital-Asset Market to Corporations and Building Trust Infrastructure,” held on the 4th at the National Assembly Members’ Office Building in Yeouido, Seoul. “Corporate participation in the market is an issue linked to qualitative growth in a retail-centric market,” Hong said, adding, “Under the recognition that market trust must be established first, we are reviewing complementary measures in tandem.”

Hong noted that expanded corporate participation could lead to large-scale transactions. “We are examining what safeguards are needed to minimize the extent to which such trades could destabilize the market,” he said. Regarding concerns that quotes or prices could be abused in the course of corporate investment, he added, “We are sufficiently reviewing issues raised from outside.”

On the market-infrastructure front, Hong indicated that the level of exchanges’ internal controls could become a key focus of scrutiny. “Internal controls at exchanges have become an issue based on past cases, so we are also hearing a lot from consultations (on the ground) as we design policy. We are refining the policy while communicating sufficiently with the industry,” he said.

Asked about the timing for corporate participation, Hong said, “We are working to do it as quickly as possible,” adding, “We will push it forward as quickly as possible in connection with discussions on the Phase 2 legislation.” He did not provide a specific timeline.

Hong also assessed that “corporate participation in the market could ultimately enhance stability compared with a retail-centric market and help the industry’s qualitative growth,” while adding that “we will reach a conclusion after comprehensively checking internal controls, market stability, and concerns about unfair practices, among other factors.”