Starting June 1, 2025, South Korea will allow nonprofits and exchanges to sell cryptocurrency legally, following new regulations by the FSC. Nonprofits must pass audits and adhere to strict guidelines, while exchanges are limited to the top 20 cryptocurrencies by market cap to curb volatility and speculation. Enhanced measures against market manipulation aim to protect investors in a rapidly changing landscape.
South Korea is moving forward with significant changes to its cryptocurrency regulations, letting nonprofit organisations and exchanges legally sell digital assets starting June 1, 2025. This decision, announced by the Financial Services Commission (FSC) during a May meeting, aims to create a more transparent and regulated marketplace in response to concerns about market volatility and unregulated trading habits.
Key requirements for nonprofits include having been operational for at least five years and successfully passing an external audit. In addition, they must establish a Donation Review Committee to oversee any sale of cryptocurrency donations. The regulations also stipulate that only cryptocurrencies listed on at least three Korean exchanges, such as Bitcoin or Ethereum, may be sold.
On the exchanges’ front, they can only trade the top 20 cryptocurrencies by market capitalisation to generate funds for operations. This includes restrictions like a daily sales cap of 10% of the planned trading volume and mandatory approval of sales plans from the board, as well as the requirement to report earnings from these sales.
To combat market manipulation and excessive speculation, the new rules specifically target trading of lower-tier assets, colloquially called ‘zombie coins’ and meme tokens. Exchanges will have to suspend trading of coins with low liquidity, which means tokens that fall below 1% in daily turnover or have a market capitalisation of less than 4 billion won ($2.79 million) for 30 days straight. Additionally, trading for new tokens will be restricted during their initial trading periods to prevent rampant speculation.
The FSC’s rules are part of a broader aim to regulate the South Korean crypto market amid ongoing volatility and growing fears over unregulated practices. The changes are expected to create a safer trading environment for both institutional and retail investors—plus, they come at a time when many believe clear regulations are essential for the future of crypto.
Looking ahead, the FSC has hinted at more regulatory changes, including potential guidelines for stablecoins and Bitcoin spot ETFs. This shift shows South Korea’s ambition to become a global leader in the sustainable cryptocurrency investment sector, laying the groundwork for other nations considering similar measures in their regulatory frameworks.
