South Korea Considers Relaxed Crypto Trading Regulations for Institutional Investors

South Korea Plans to Relax Institutional Crypto Trading Restrictions

In a move aimed at aligning with global regulatory practices and promoting a more favorable environment for the crypto industry, South Korea’s financial regulator plans to relax institutional crypto trading restrictions.

According to recent reports, the Financial Services Commission (FSC) has announced its intention to loosen the reins on institutional investors’ ability to engage in cryptocurrency trading. The move is seen as a significant development in the country’s regulatory landscape and comes amidst growing concerns over market volatility and the need for greater transparency in the crypto space.

It appears that the FSC’s decision to relax restrictions on institutional traders will be carried out in phases, with the agency first allowing institutional investors to participate in the digital asset trading arena. However, it is unclear at this point whether individual retail investors will still face a ban on such activities.

The need for greater regulation in the crypto market has been underscored by recent high-profile failures and black swan events such as the Terra network collapse and FTX’s crash, resulting in significant financial losses for many institutional investors. The Terra network failure alone is estimated to have caused $8-10 billion in losses.

Under the new regulations, banks will be instructed to restrict institutional trading activities, while retail traders will still have access to regulated local exchanges. Furthermore, it appears that efforts are underway to establish standard criteria for listing and delisting digital assets on these platforms.

While this move is seen as a positive development by some, others remain skeptical about the implications of allowing institutions back into the market. Some experts argue that the risks associated with institutional trading may outweigh any perceived benefits, especially in light of recent market turbulence.

It remains to be seen how these regulatory changes will impact the global crypto landscape and what their implications will be for investors and traders alike.

About the Author

Source: coinjournal.net