Kim So-young, vice chairman of the Financial Services Commission, speaks during a meeting of the virtual asset committee at the Government Complex Seoul, Wednesday. Yonhap

Financial authorities in Korea took a cautious approach to allowing corporate accounts for virtual asset exchanges, postponing their conclusion in favor of continuing discussions, Wednesday.

Contrary to expectations, the issue of allowing corporate accounts for virtual asset trading was not included on the meeting agenda of the virtual asset committee under the Financial Services Commission (FSC), the country's top financial regulator, as the authorities determined that a more thorough review is necessary.

However, since the general direction toward approval has been set, a decision is expected soon.

“The issue of allowing accounts for corporations, which was discussed previously, has undergone extensive review through 12 subcommittee and task force discussions,” FSC Vice Chairman Kim So-young said.

“The policy review process is nearing completion. We will report the results soon and proceed with the subsequent steps promptly.”

The 15-member committee is a policy and institutional advisory body chaired by the FSC vice chairman and composed of government officials from relevant ministries, legal professionals and information security experts.

Initially, the market anticipated that the decision on allowing corporate accounts would be made during the meeting, but the issue was not included on the meeting agenda and has been postponed.

Allowing corporate accounts would signify that corporations can enter the virtual asset market. If such accounts are permitted, it could open various business opportunities, including virtual asset investments, payment settlements with virtual assets and the launch of new ventures.

Industry officials believe that enabling corporations to enter the market is essential for the development of the virtual asset sector and to maintain competitiveness in the global market.

The meeting instead focused on discussions regarding the second phase of the country's first law on virtual asset user protection, which took effect in July last year.

“We are officially beginning discussions on the second phase of the law. A comprehensive and systematic approach encompassing businesses, markets and users is necessary,” Kim said.

The first phase of the law introduced user protection measures such as safeguarding deposits and regulating unfair trading practices. However, comprehensive regulations addressing virtual asset issuance, distribution and disclosure remain insufficient.

Accordingly, the committee plans to proceed with the second phase of legislation to address regulatory gaps.

The committee will also begin discussions to establish a separate regulatory framework for businesses and transactions related to stablecoins.

Stablecoins are a type of cryptocurrency designed to maintain a stable value by being pegged to specific assets, such as fiat currencies.

The committee plans to promptly form task forces and working groups involving relevant organizations to begin reviewing detailed measures.