South Korea to Lift 9-Year Ban on Financial Institutions' Crypto Holdings This Year

According to Edaily, South Korea's Financial Services Commission committed on July 23 to lifting a nine-year administrative ban on financial institutions' holdings of cryptocurrency company shares, with officials stating the policy could be repealed by year-end. Commission official Kim Sung-jin said the government is advancing stablecoin-related legislation (the second phase of the Digital Asset Framework Act) alongside institutional investor entry, with digital asset laws expected to be completed within 2026.

Once implemented, banks and securities firms will be able to participate in crypto investments. The commission is also researching mechanisms similar to stock market institutional brokers and over-the-counter trading intermediaries for the virtual asset market, while referencing EU approaches to streamline financial institution entry requirements.