Korea's Crypto Market Moves Towards Institutional Players

South Korea's cryptocurrency market is undergoing a significant transformation as it shifts towards institutional investors. According to Andrew Park, CEO of FactBlock and organizer of Korea Blockchain Week, the country's virtual asset market has traditionally been driven by retail investors, but this trend is changing.

The financial authorities in South Korea are considering allowing corporate virtual asset accounts for approximately 3,500 listed companies and professional investors. This move would mark a departure from the current restrictions that have limited direct corporate involvement in crypto trading.

As part of this effort, the National Assembly has been laying the groundwork to integrate tokenized assets and security tokens into the existing financial regulatory framework. Revisions to the Electronic Securities Act and the Capital Markets Act are being drafted to provide legal clarity for these new asset classes, signaling a deliberate effort to modernize the country's financial infrastructure.

The Bank of Korea is also making progress on Project Hangang, its central bank digital currency (CBDC) initiative. The first phase of testing has been completed and a second phase aimed at institutional participants is planned by the end of 2026.