South Korea Crypto Market Shifts Toward Institutional Investors

South Korea's crypto market is undergoing significant changes as it shifts from retail-driven to institutional investment, according to Andrew Park, CEO of FactBlock and organizer of Korea Blockchain Week. The regulatory push aims to redefine how digital assets are traded and managed in one of Asia's most active markets.

Park noted that South Korean financial authorities are considering allowing corporate virtual asset accounts for around 3,500 listed companies and professional investors. This move would mark a departure from current restrictions and could unlock significant institutional capital, bringing greater liquidity and stability to the market.

In parallel, the National Assembly is 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's progress on Project Hangang, its central bank digital currency (CBDC) initiative, is another key development. The central bank has completed the first phase of testing and plans to launch a second phase aimed at institutional participants by the end of 2026.