South Korea’s new regulations allowing companies to buy Bitcoin and other cryptocurrencies on their balance sheets were due to take effect by the end of the year.
However, the government has still not issued any guidelines despite the schedule, leaving the area in limbo, according to Seetha Journal.
Kim Tae-young, a financial analyst at Sisa Journal, said, “The entry of the corporate market into cryptocurrencies is expected to significantly change the landscape of the industry. Therefore, guidance issued by financial authorities is important. Companies are waiting for the green light, but regulations are always postponed.”
Local crypto exchanges say uncertainty is slowing the market. However, Korean companies argue that while their competitors in the United States and Japan have already amassed Bitcoin assets, they are lagging behind. Current regulations do not even allow businesses to open cryptocurrency wallets.
In February, the Financial Services Commission (FSC) announced a roadmap to gradually allow businesses to trade in crypto assets. The first phase allowed the sale of cryptocurrencies to NGOs, government agencies, and universities. It was announced that the next phase will allow businesses to transact, and the final phase will allow banks to open cryptocurrency wallets. In response to these announcements, major exchanges began developing services for corporations.
Market leader Upbit says it currently has more than 160 enterprise customers, while Bithumb reportedly works with about 100. However, Kim Tae-young said, “There are also potential customers who submitted documents before the approval process, so the actual number may be even higher.”
Park Joo-young, who runs a media company in Seoul’s Gangnam district, expressed frustration over the delay, saying, “In the United States and Japan, businesses can buy Bitcoin as they like, so why is it being blocked here? The money is ours, and we should make the decisions.”
According to Kim Tae-yong, the reason for the postponement is the unexpected presidential election in June and the protracted process of government reorganization after the election.
*This is not investment advice.
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