Korean Version of 'Strategy' Coming... Investment Path Opens for 3,500 Companies

Listed Companies Can Invest in Cryptocurrencies from Second Half

FSC Prepares Corporate Participation Roadmap

Government Agency-Held Coins Allowed to be Liquidated

Bitcoin Spot ETF Introduction Postponed

From the second half of this year, 3,500 entities including listed companies and professional investment corporations, excluding financial companies, will be able to trade virtual assets. Virtual assets held by prosecutors, tax offices, local governments, and universities can be sold for cash.

The Financial Services Commission (FSC) held its 3rd Virtual Asset Committee meeting on the 13th and announced the 'Corporate Virtual Asset Market Participation Roadmap.' FSC Vice Chairman Kim So-young stated, "There was consensus on allowing corporate participation in the virtual asset market considering increasing blockchain business demands and global regulatory alignment," adding that "gradual implementation is desirable to minimize risks."

Bank real-name accounts for corporations will first be allowed for government agencies and non-profit organizations that have confiscated or received virtual assets as donations, and virtual asset exchanges that collect virtual assets as fees. Law enforcement agencies like prosecutors, tax offices, and local governments, which have been receiving accounts since November last year, can open accounts immediately. Non-profit organizations like universities and designated donation organizations, along with virtual asset exchanges, can receive accounts from the second quarter.

From the second half of the year, approximately 3,500 entities, including about 2,500 companies listed on the KOSPI and KOSDAQ markets and about 1,000 corporations registered as professional investors under the Capital Markets Act, can open corporate accounts to own and trade virtual assets. Financial authorities plan to establish guidelines in the first half of the year limiting the types of virtual assets and trading volumes, implementing pilot operations in the second half. However, financial companies are excluded from eligibility, likely delaying the domestic introduction of Bitcoin spot ETFs.

Listed Companies Can Trade Bitcoin from Second Half

Investment Allowed for Public Companies Like US Strategy with '480,000 BTC Holdings'

The company holding the most Bitcoin globally is Strategy (formerly MicroStrategy), listed on the US NASDAQ. Starting as a software services company, it began accumulating Bitcoin in August 2020 and transformed into a Bitcoin investment specialist. The company, which buys Bitcoin with funds raised through bond issuance, reportedly holds 478,740 Bitcoin ($46 billion worth), about 2% of Bitcoin's total circulation.

◇Listed Company Investment Allowed in Second Half

Domestic companies are expected to be able to invest in virtual assets like Strategy. This comes as financial authorities will allow virtual asset corporate account opening and trading for listed companies and registered professional investors from the second half. This enables the emergence of a 'Korean Strategy.' The FSC announced this 'Corporate Virtual Asset Market Participation Roadmap' on the 13th.

The government previously restricted corporate participation in the virtual asset market due to money laundering and market overheating concerns. However, positions changed as virtual assets became institutionalized overseas, particularly in the US, and corporate participation increased. The institutional foundation was established with the Virtual Asset Users Protection Act implementation in July last year.

A virtual asset industry insider said, "While market expectations included corporate accounts for government agencies and non-profits, allowing listed company investment within the year is more progressive than expected," adding, "It seems authorities can no longer deny virtual assets' reality."

◇Bitcoin ETF Introduction Remains Uncertain

However, financial companies are excluded from eligible virtual asset investment entities in this roadmap, delaying the domestic introduction of virtual asset spot ETFs like Bitcoin. To launch virtual asset spot ETFs, financial companies need to hold virtual assets, but authorities maintain a conservative stance on financial companies' account opening and market participation. The Virtual Asset Committee maintains that "direct trading and holding of virtual assets by financial companies requires careful consideration as virtual asset risks could transfer to the financial system." Authorities plan to exclude pension funds like the National Pension Service as 'quasi-financial institutions' from corporate account eligibility.

Discussions on allowing virtual asset trading for general corporations, excluding listed companies and professional investor corporations, are expected in the medium to long term. An FSC official emphasized, "General corporate trading can be considered after establishing second-phase virtual asset legislation and related systems including foreign exchange and taxation."

Reporter Yeon-soo Shin sys@hankyung.com