South Korea has begun talks on the second phase of cryptocurrency regulations, with a focus on stablecoins and user protection, with a draft expected to be drafted by mid-2025.

South KoreaThe Financial Services Commission, the country's financial regulatory body, has officially begun work on the second phase of its cryptocurrency rules to strengthen user protections, local news outlet EDaily reported. Reports.

The move to move forward with the second phase comes as the global cryptocurrency market faces “rapid changes with mixed feelings of optimism and uncertainty,” said Kim Soo-young, vice chair of the FSC. South Korea's first cryptocurrency regulation, known as the Virtual Assets User Protection Act, came into effect in July 2024. It defines “virtual assets,” establishes rules for user protection, targets unfair business practices, and sets penalties.

The new set of rules will reportedly cover areas such as stablecoinsCryptocurrency exchanges and business entry regulations, although details have not yet been revealed. The Financial Services Commission reportedly plans to work with other government agencies to finalize the second phase of the law by mid-2025, although no specific dates have been set.

South Korea eases restrictions on cryptocurrencies

Meanwhile, South Korea He thinks Easing restrictions on corporate cryptocurrency trading and plans to gradually issue real-name accounts to institutional investors. The update will allow businesses, starting with non-profit organizations, to open real-name accounts on cryptocurrency exchanges.

Currently, South Korea's cryptocurrency laws only allow retail investors with real, verified accounts to trade. While there is no formal ban on institutional investors, banks have been advised against issuing accounts in the real name of companies.

In January 2024, the head of the South Korean Stock Exchange, Jeong Eun-bo, He said The trading platform wants to “explore” cryptocurrency ETF approval in 2025, with reports suggesting that the FSC also wants to allow companies to launch security token offerings. In his speech at the 2025 Stock and Derivatives Market Opening Ceremony, Jeong said the exchange "will measure the outliers of new companies such as cryptocurrency ETFs and explore new areas in the capital market."