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

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.

The Financial Services Commission (FSC) of Korea is set to introduce guidelines for corporations to invest in cryptocurrencies by April, in a move that signals the integration of digital assets into regulated financial markets, according to a U.S.-based crypto expert.

The pilot program by the government to allow institutional crypto trading and recognize tokenized securities will be a precedent for broader adoption, said John Matheson, co-founder and managing director at Asset Token Ventures.

The U.S. Virgin Islands-based firm, which focuses on real-world asset (RWA) tokens, has various products in development, including its flagship product, MBSToken, which is designed to provide stability, transparency and security in the cryptocurrency market. Its primary focus is on mortgage-backed securities.

"We believe that the Korean government's approach to managing the transition of cryptocurrencies into the mainstream is being taken with great care and foresight," Matheson said in an interview with The Korea Times.

"The March 12 announcement by the FSC regarding a pilot program for corporate investments in virtual assets is a testament to this effort."

The commission said in a statement that the guidelines will include information on which companies are eligible to invest, the methods of investment and the disclosure of transaction details. For banks, the guidelines will cover accounting and cash conversion.

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

The non-profit entities and crypto exchanges will have the 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.

Also present at the meeting 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 non-profit entities 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.

This series of regulatory shifts from restriction to structured adoption are positive steps, according to Matheson.

"The recent news from the U.S. regarding the Virtual Asset User Protection Act and potential spot Bitcoin exchange-traded funds approvals also signals 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 of the program will matter, this regulatory clarity certainly paves the way for a safer and more robust digital asset market, which is an initiative that the global community has been following closely."

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.

"The reports of strict compliance measures to reduce fraud and mitigate risk are promising, as is the phased initiative to introduce security tokens and grant offshore investors access to the market, which would require adjusting existing regulations."

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

"We hope that the upcoming April timeframe for the non-profit organizations and the third quarter time frame for the listed corporations and investment firms will be met, ensuring seamless participation and interoperability with global markets. This will be key to sustaining Korea's leadership in digital finance," the managing director said.

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

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.

"We see strong partnership potential with both blockchain innovators and traditional financial institutions in Korea," he said.

"Busan Digital Asset Exchange 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."

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

"The reports of the Financial Services Commission's plans to recognize tokenized securities and introduce a pilot program for corporate investments in virtual assets are positive developments that align with the global trends we're observing," he said.