South Korea saw its first sales of institutional digital assets for the first time after the ban on institutional crypto trading began. The positive development is two days before the SNAP presidential election scheduled for June 3, 2025.
First time in South Korea’s institutional cryptocurrency sale
On Sunday, South Korea’s nonprofit World Vision conducted its first digital asset sales at an institution in the country. The cryptocurrency exchange announced in a statement from UPBIT’s parent company Dunamu that the company has sold 0.55 Ether (ETH) for 1.98 million won, equivalent to $1,437.
Starting June 1, 2025, nonprofits, including charities and universities, are allowed to sell cryptocurrencies through local exchanges as part of the Financial Services Commission (FSC) roadmap to involve businesses in the digital asset market.
In February, the FSC’s Virtual Assets Commission announced that it would phase out the ban on institutional investment in digital assets starting from the 2nd quarter of 2025 quarter 2025 by allowing the creation of actual accounts for institutions.
In South Korea, cryptocurrency investment requires a real-name account and can only be invested in digital assets under the account that is completed under the Financial Transactions Act that is permitted to be completed. However, the FSC guides banks not to issue these accounts to companies, limiting institutional cryptocurrency transactions despite no legal barriers or official bans.
As Dunamu revealed, World Vision was able to connect its K banking company account to its UPBIT account and successfully sold Ethereum received as a donation three months ago via Exchange’s KRW marketplace.
Dunamu and nonprofits conducted a digital asset donation campaign in March to purchase school uniforms, backpacks and other essential items needed for the new school year for vulnerable teenagers who work hard to afford.
UPBIT’s parent company reveals its plans to continue to support nonprofits in selling their digital assets by donating, while “adhering to guidelines established by financial authorities and industry to build a healthy culture of virtual asset donation.”
Additionally, it announced it is preparing for the second phase of the FSC roadmap, where qualified publicly traded companies and professional investors will be allowed into the digital asset market for the first quarter of 2025.
A new era of digital assets?
This key development in South Korea’s cryptocurrency industry will replace impeachment president Yoon Suk-Yeol, who attempts to declare martial law in December 2024, following the presidential election on June 3.
Despite the results, digital asset investors in the country are expected to benefit as two major candidates vow to implement industry-friendly policies to capture nearly 18 million people investing in South Korea’s digital assets.
As the Bitcoin Family reported, the People’s Power Party (PPP) candidate Kim Moon-SOO announced that he would allow on-site crypto exchange-traded funds (ETFs) if he wins. King vowed to push for approval of digital asset-based investment products and other financial policies to increase the wealth accumulation of the middle class.
Kim’s camp said the growing number of digital asset investors in the younger generation is the decisive factor in the institutionalization of spot ETFs and the institutionalization of digital assets on the commitment list.
Meanwhile, South Korea’s Democratic Party (DPK) candidate Lee Jae-Myung has also promised to introduce spot crypto ETFs and a lower digital asset transaction tax in the country.
Lee promises to “create a secure virtual asset investment environment by establishing an integrated surveillance system” and “expand the cryptocurrency market while enhancing investor protection.”
Ethereum's performance in the one-week chart. Source: ETHUSDT on TradingView
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