What happened?
World Vision Korea, a non-profit organization, has become the first institution to sell cryptocurrency in South Korea after the government announced the lifting of a ban on institutional clients trading crypto. Under new guidelines by the South Korean Financial Services Commission (FSC), non-profits can sell cryptocurrency they receive through donations. World Vision Korea sold 0.55 Ethereum, worth approximately 1.98 million won ($1,431), on the Upbit exchange.
Who does this affect?
The changes primarily affect non-profit organizations in South Korea, as they are now permitted to sell cryptocurrencies received as donations under new regulatory guidelines. It also impacts donors who wish to contribute using digital currencies, offering them a regulated way to do so. Additionally, the developments influence South Korean financial institutions and crypto exchanges which will facilitate these transactions, following strict compliance measures.
Why does this matter?
This development marks a significant shift in South Korea’s stance on digital assets, potentially influencing the market by increasing participation from non-profit organizations. The regulatory change could lead to a broader acceptance and use of cryptocurrency within the country, laying groundwork for more entities to engage in crypto transactions. It highlights a growing trend towards embracing digital assets, which could impact market dynamics by increasing liquidity and expanding the user base in the cryptocurrency sector.