Korea's pilot program on corporate investments in cryptocurrencies is a strong signal

Korea's pilot program on corporate investments in cryptocurrencies is a strong signal that digital assets are becoming integrated into regulated financial markets

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 program, which will see limited use cases open up in April, is part of a broader trend in Korea to regulate the cryptocurrency industry more effectively, with a focus on balancing innovation with investor protection, he noted.

"Allowing institutional crypto trading and recognizing tokenized securities signals that Korea is aligning its regulatory standards with advanced peers and setting the stage for broader adoption," said John Matheson, co-founder and managing director at Asset Token Ventures.

ATV is a U.S. Virgin Islands-based firm that has introduced various RWA tokens. Its flagship product is the mortgage-backed securities-oriented MBSToken, which provides security, transparency and stability in the cryptocurrency market, he said.

"This approach demonstrates that digital assets can coexist with traditional finance in a clearly defined manner, providing a blueprint for other nations," Matheson said. "It also suggests that crypto trading will become more mainstream, increasing institutional participation and investor confidence."

His assessment was in response to a March 12 announcement by the Financial Services Commission (FSC) detailing guidelines for corporate investments in virtual assets, which will be available in April.

The guidelines will specify the types of companies that can invest in cryptocurrencies, the permissible methods of investment and the required disclosure of transaction details.

Banks will also release guidelines on accounting and cash conversion for virtual asset transactions by the second quarter of this year.

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

FSC Vice Chairman Kim So-young said that nonprofit entities and crypto exchanges will have detailed 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.

Those present at the meeting included 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 nonprofits 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 is a positive step, according to Matheson.

"The Virtual Asset User Protection Act and potential spot Bitcoin exchange-traded funds approvals indicate 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 matter, this regulatory clarity paves the way for a safer and more robust digital asset market."

He added that 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.

"Strict compliance measures reduce fraud, while phased initiatives — such as pilot programs and security token recognition — encourage innovation."

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

"Ensuring seamless participation and interoperability with global markets will be key to sustaining Korea's leadership in digital finance," the managing director said.

Partnerships

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

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.

However, regulatory uncertainty and restrictions on foreign participation have been challenges.

The government's recent moves to create clearer regulations and support infrastructure like the Busan Digital Asset Exchange (BDAX), in that sense, are promising steps toward stability and innovation.

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

Implications for RWA market

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

"Korea's