Regulatory Developments
South Korea Advances Crypto Access for 3,500 Companies
South Korea's Financial Services Commission (FSC) has initiated a three-part digital-finance initiative, enabling 3,500 companies to access crypto accounts, legal tokenized securities frameworks, and deposit-token trials. The program, reported by crypto.news, includes corporate crypto pilots, legislative changes for tokenized assets, and central-bank-backed deposit-token testing. These developments signal a shift toward institutional crypto integration, though details remain unconfirmed by official sources. This development is not officially confirmed.
Corporate Crypto Access Pilot
South Korea's Financial Services Commission (FSC) has launched a corporate crypto pilot, granting 3,500 listed companies and professional investors access to crypto accounts through real-name bank links. This initiative, outlined in a 2025 roadmap, aims to formalize institutional participation in digital assets while maintaining controlled access. The program excludes financial institutions but allows eligible corporations to trade the 20 largest cryptocurrencies by market value, subject to a 5% equity capital investment cap. The FSC's phased approach reflects efforts to balance innovation with risk management, as corporate crypto activity had been restricted since 2017 due to lack of real-name account infrastructure.
The pilot's implementation follows years of regulatory hesitation. Since 2017, Korean companies could not trade virtual assets via local exchanges due to banks' refusal to provide real-name accounts. While not explicitly banned, this policy effectively excluded corporate capital from the market. The FSC's recent move addresses this gap by enabling controlled participation, with eligibility criteria emphasizing institutional risk management capabilities. The program's success hinges on compliance with new custody standards, as seen in BitGo Korea's recent VASP registration, which allows institutional crypto custody services under Korean financial intelligence rules.
Tokenized Securities Legislation
South Korea has enacted legal frameworks for tokenized securities, with amendments to the Electronic Securities Act and Capital Markets Act taking effect in February 2027. These changes require distributed ledgers to serve as legally recognized records for securities issuance, with registration through the Korea Securities Depository (KSD). The reforms align with global trends, ensuring that blockchain-based assets remain subject to existing securities regulations. Issuers must follow KSD procedures, preventing the use of blockchain records as unregulated ownership systems. This approach mirrors the U.S. SEC's stance that tokenized securities remain subject to federal laws, even when issued on distributed ledgers.
The legislative shift supports infrastructure development, as seen in Samsung SDS's contract to build a token-securities platform for KSD. The system will integrate distributed-ledger data with existing electronic securities accounts, enabling functions like issuance tracking and real-time monitoring. Meanwhile, Shinhan Bank and Plume's offshore proof of concept tests KYC/AML procedures for tokenized funds, though it excludes Korean residents. These efforts reflect a dual focus on compliance and innovation, ensuring that tokenized assets operate within regulatory boundaries while exploring new use cases for programmable securities.
Deposit-Token Trials Expand
The Bank of Korea's Project Hangang has expanded deposit-token testing to nine banks, including BNK Kyongnam and iM Bank, following Phase I's 2025 launch. The initiative combines wholesale central-bank money with commercial-bank-issued deposit tokens, enabling programmable payment conditions. Phase II includes person-to-person transfers, biometric approvals, and automatic conversion between ordinary deposits and tokens. The central bank is also testing AI-agent payments, as demonstrated by LG CNS's 2026 agentic service. These trials aim to modernize payment systems while maintaining regulatory oversight, with applications ranging from government spending controls to AI-driven transactions.
The program's infrastructure includes a 9.6 billion won deposit-token payment initiative involving nine banks, eight payment companies, and two merchants. This test seeks to lower processing fees for small businesses by integrating deposit tokens with existing payment networks. The Bank of Korea emphasizes that deposit tokens are not cryptocurrencies but digital representations of bank deposits. This distinction is critical for regulatory clarity, as the central bank explores tokenized bonds and shares as settlement instruments. The project's success could influence cross-border payment systems, as South Korea has already linked its digital-currency infrastructure to the BIS's Project Agorá.
AI-Driven Payment Innovations
Project Hangang's technical work includes AI-agent payments, with LG CNS demonstrating a 2026 service using deposit tokens for automated transactions. Under this model, AI agents can search for products, verify user-defined conditions, and execute payments via tokenized bank deposits. The Bank of Korea emphasizes that programmable payment conditions ensure transactions only occur after specified actions or market events. This innovation aligns with broader efforts to integrate AI into financial systems, as seen in the central bank's collaboration with the BIS's Project Agorá. The initiative also supports government spending controls, with digital vouchers restricting fund usage to specific recipients and timeframes.
The integration of AI and blockchain raises compliance challenges, particularly around transaction transparency and regulatory oversight. While the Bank of Korea maintains that deposit tokens remain under central-bank control, the complexity of AI-driven transactions requires robust monitoring frameworks. This development underscores the need for adaptive regulatory approaches, as South Korea balances innovation with systemic stability. The central bank's focus on programmable money reflects a global trend toward smart contracts and automated financial systems, which could redefine traditional banking models.
Regulatory Implications and Next Steps
The reported developments highlight South Korea's push to formalize institutional crypto participation, though no official confirmation has been issued. The FSC's corporate crypto pilot, tokenized securities legislation, and deposit-token trials represent a coordinated effort to modernize financial infrastructure. However, uncertainties remain regarding stablecoin eligibility, custody standards, and cross-border interoperability. The absence of direct statutory bans on corporate crypto trading since 2017 created a regulatory gray area, which the FSC aims to address through structured pilots and legislative reforms.
Stakeholders should monitor FSC updates on investment caps, asset eligibility, and compliance requirements. The Bank of Korea's Project Hangang will continue testing programmable money, with potential implications for AI-driven transactions and government spending. As South Korea aligns with global trends in tokenized assets, the focus will shift to ensuring regulatory clarity and market stability. The next phase involves evaluating the pilot programs' outcomes and refining frameworks to support sustainable institutional adoption of digital finance.
Cexvia conclusion
Regulatory Momentum for Institutional Crypto Integration
The reported measures represent a significant regulatory shift toward institutional crypto adoption in South Korea, though no official confirmation has been issued. The affected entities include 3,500 listed companies and professional investors, while financial institutions and tech firms are adapting to new compliance frameworks. Next steps involve monitoring FSC updates and assessing market readiness for tokenized assets. This development is not officially confirmed.
- Risk meaning
- The expansion of crypto access for corporations and the legal recognition of tokenized securities indicate a regulatory effort to formalize institutional participation in digital assets. This reduces operational risks for compliant entities but introduces compliance challenges for unprepared firms. The deposit-token trials further signal central-bank interest in programmable money, which could reshape payment systems.
- User action
- Corporate investors and financial institutions should review FSC guidelines for crypto account eligibility and tokenized-asset compliance. Tech firms involved in custody solutions or blockchain infrastructure should monitor regulatory updates on stablecoin eligibility and custody standards. All stakeholders should prepare for potential shifts in market dynamics as institutional adoption accelerates.
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