In the ever-evolving landscape of digital finance, South Korea has taken a monumental step by lifting its ban on institutional crypto transactions, marking it as a pivotal moment for the country’s digital asset market. This advancement comes just ahead of the country’s snap presidential elections, slated for June 3, 2025, heralding a new era of possibilities for the crypto industry in South Korea. As these changes unfold, both investors and industry players are keenly observing the impact on the financial ecosystem and potential policy shifts that may arise following the elections.

South Korea’s Institutional Crypto Leap: A New Beginning

Breaking Ground: South Korea’s First Institutional Crypto Sale

In a significant move, South Korea entered the digital asset market with its first institutional sale, executed by the non-profit organization World Vision. On a historic Sunday, World Vision became the pioneer by selling 0.55 Ether (ETH) for 1.98 million won, approximately $1,437, through Upbit, a leading crypto exchange managed by Dunamu. This transaction marks a new chapter as of June 1, 2025, when non-profit organizations, universities, and charities can actively engage in the sale of crypto assets, following the Financial Services Commission’s (FSC) progressive roadmap that supports corporate involvement in the digital asset sector.

Earlier this year, the FSC’s Virtual Asset Committee outlined plans to phase out the ban on institutional crypto investments, starting with non-profits. By introducing verified real-name accounts for these organizations, the FSC is enabling a structured entry into the digital asset domain, previously hindered by limited banking permissions despite a lack of formal legislative bans.

World Vision utilized its connectivity with K Bank to link its corporate account with Upbit, facilitating the sale of Ethereum donations received three months prior. This campaign, orchestrated in partnership with Dunamu, aimed to support vulnerable teenagers by providing essentials like school uniforms and backpacks, highlighting a philanthropic dimension to crypto transactions.

Further, Dunamu remains committed to supporting non-profit organizations in the monetization of donated digital assets, ensuring compliance with financial regulations and fostering a robust virtual asset donation culture. Additionally, plans are in motion for the second phase of FSC’s roadmap, allowing public companies and professional investors to enter the crypto market by Q3 2025.

Opportunities and Challenges: A New Era for Digital Assets

The unfolding developments in South Korea’s crypto sector coincide with the impending presidential elections, an event anticipated to influence the nation’s policy direction significantly. The elections follow the impeachment of President Yoon Suk-yeol, who faced controversy over attempts to impose martial law in late 2024.

Both major presidential candidates are advocating for policies favoring digital asset investors, a demographic comprising nearly 18 million South Koreans. Kim Moon-soo of the People Power Party has promised to facilitate the approval of crypto Exchange-Traded Funds (ETFs) and promote digital asset-based financial products to enhance middle-class wealth. The policy reflects the rising trend of digital asset investments among younger voters, propelling it to the forefront of election pledges.

Conversely, Lee Jae-myung of the Democratic Party of Korea echoes similar promises, advocating for the introduction of spot crypto ETFs and a reduction in transaction taxes. His platform emphasizes creating a secure investment environment through comprehensive oversight mechanisms while expanding the crypto market and bolstering investor safeguards.

FAQs About South Korea’s Digital Asset Developments

What changes have been implemented in South Korea’s crypto regulations?

South Korea has lifted its ban on institutional crypto transactions, allowing non-profits such as charities and universities to sell digital assets. This change is part of a broader roadmap from the FSC to gradually open the digital asset market to corporations.

How might the South Korean presidential election impact the crypto market?

Both leading candidates have expressed support for crypto-friendly policies, including the introduction of spot ETFs and reduction of transaction taxes. These policies aim to capture the growing interest in digital assets, particularly among younger investors.

What is the significance of World Vision’s sale of Ethereum?

The sale by World Vision marks South Korea’s first institutional crypto transaction, symbolizing a shift towards broader acceptance and integration of digital assets within institutional frameworks.

How are institutions in South Korea adapting to the new crypto regulations?

Institutions are beginning to navigate the regulatory landscape by linking verified bank accounts to crypto exchanges, enabling compliant transactions. This shift is expected to open new opportunities for investment and donation models within the country.

Through these developments, South Korea is poised to become a pivotal player in the global crypto market, embracing innovation while navigating regulatory frameworks to foster a secure and prosperous digital asset environment.