John Matheson, co-founder and managing director at Asset Token Ventures (ATV) Courtesy of ATV

Korea's pilot program on corporate investments in cryptocurrencies is a strong signal that digital assets are becoming integrated into regulated financial markets, according to a U.S.-based crypto expert with a background in certified public accounting and law.

By allowing institutional crypto trading and recognizing tokenized securities, the government is setting a precedent for broader adoption, John Matheson, co-founder and managing director at Asset Token Ventures said in a recent interview with The Korea Times.

The U.S. Virgin Islands-based firm has introduced various real-world asset (RWA) tokens. Its flagship product is the mortgage-backed securities-oriented MBSToken. This provides security, transparency and stability in the cryptocurrency market, he said.

"The Korean government's approach demonstrates that digital assets can coexist with traditional finance under clear regulations, providing a blueprint for other nations," Matheson said. "It also indicates that crypto trading will become more mainstream, increasing institutional participation and investor confidence."

His assessment was in reference to the March 12 Financial Services Commission (FSC) announcement that detailed guidelines for corporate investments in virtual assets will be available in April. Included will be information on eligible companies, as well as methods and disclosure of transaction details.

Banks will also roll out guidelines on accounting and cash conversion.

Financial Services Commission Vice Chairman Kim So-young speaks during a meeting at Seoul Government Complex, March 12. Yonhap

FSC Vice Chairman Kim So-young said at the time that "nonprofit entities and crypto exchanges will have detailed guidelines as early as next month, while the timeframe will be extended for listed firms and investment firms by the third quarter of this year.

In attendance were the Digital Asset eXchange Alliance, four crypto exchanges — Upbit, Bithumb, Beeblock and Wavebridge — as well as custody service providers, the Korean Federation of Banks and commercial lenders issuing real-name accounts, including Kbank and Shinhan Bank.

The announcement is the latest development in the eased crypto market regulations.

Before June, real-name accounts for nonprofits will be issued and virtual asset exchanges will be allowed to conduct cash transactions for employee salary payments and taxes.

By the year's end, about 3,500 listed firms and investment firms will be issued real-name accounts for crypto investments.

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This series of regulatory shifts from restriction to structured adoption is a positive step, according to Matheson.

"The Virtual Asset User Protection Act and potential spot Bitcoin exchange-traded funds approvals indicate a maturing approach that balances oversight with market growth," he said.

The clear guidelines will help deepen institutional participation and investor trust in Korea, which, in his view, is in line with global trends. "While implementation details matter, this regulatory clarity paves the way for a safer and more robust digital asset market."

The equal emphasis on enforcing strong investor protections and allowing gradual market expansion is desirable, but only to the point where the country's regulatory standards align with those of advanced peers.

"Strict compliance measures reduce fraud, while phased initiatives — such as pilot programs and security token recognition — encourage innovation," he said.

However, for offshore investors, a well-regulated and attractive Korean market still has access barriers.

"Ensuring seamless participation and interoperability with global markets will be key to sustaining Korea's leadership in digital finance," the managing director said.

Partnerships

Korea has one of the world's most active crypto markets, with high adoption, deep liquidity and a strong blockchain ecosystem, Matheson said.

Platforms such as Busan Digital Asset Custody Service provide institutional-grade solutions for managing tokenized assets, while Woori Bank is actively working on security token offerings.

However, regulatory uncertainty and restrictions on foreign participation have been challenges.

The government's recent moves to create clearer regulations and support infrastructure like the Busan Digital Asset Exchange (BDAX), in that sense, are promising steps toward stability and innovation.

"We see strong partnership potential with both blockchain innovators and traditional financial institutions in Korea," he said. "BDAX is pioneering the tokenization of commodities, real estate, and intellectual property, aligning with our mission to democratize investment access."

"NH NongHyup Bank and Woori Bank are both advancing security token platforms, which could enable greater institutional adoption of [RWAs]. Samsung SDS provides blockchain-based enterprise solutions that could enhance the scalability and security of digital asset transactions. Collaborating with these firms could help bridge traditional and digital finance, expanding tokenized asset adoption in Korea and beyond," Matheson said.

Implications for RWA market

The FSC's recognition of tokenized securities aligns with the global push for institutional adoption of blockchain-based assets, the expert said.

"Korea's regulatory framework mirrors initiatives by global banks and asset managers, providing legitimacy to RWAs," he said. "By creating a structured market for tokenized securities, Korea is positioning itself as a leader in financial innovation, paving the way for broader institutional and retail participation in digital assets."

Korea's evolving framework is a step forward, in his view, but global regulatory harmonization and institutional confidence are needed for widespread implementation.

"In the U.S., President [Donald] Trump has formed a working group on digital asset markets to develop a clear regulatory framework for digital assets," he said. "This is a positive sign that legislative clarity is near. I hope Korea remains open to similar steps."

The working group is the product of multiple stakeholders including the U.S. Congress, federal regulatory agencies, state regulators and various crypto industry participants.