ONE BIG THING: The Window for Institutional Entry is Opening Now

Korean financial authorities are paving the way for institutional digital asset adoption. With the growing regulatory focus on third-party custody for corporate investments and the anticipated drafting of the Phase 2 stablecoin legislation this week, the Korean market is steadily transitioning into a regulated ecosystem.

I. BDACS Highlighted as a Key Beneficiary of Corporate Crypto Legalization

As the Korean market prepares to allow corporate digital asset investments, the structural separation of trading and storage functions is becoming increasingly critical.

• Premier Custody Infrastructure: BDACS is recognized as one of the select few—only about eight—dedicated digital asset custodians operating in Korea. Experts emphasize that as the corporate market opens, the separation of trading and custody will be paramount. Consequently, traditional financial institutions are actively collaborating with dedicated custodians like BDACS to compete for early market dominance, cementing the absolute necessity of reliable third-party custody partners.

▶ Source: Invest Chosun | Seoul Economic Network TV

I. Custody: Corporate Investment Roadmap and Public Sector Outsourcing

Financial authorities and government agencies are actively exploring safety nets for institutional capital, bringing the absolute necessity of third-party custody to the forefront.

• Corporate Investment Roadmap and Custody Guidelines: The FSC aims to release the roadmap for corporate market participation in the first half of the year. Concurrently, to address internal control risks, authorities are drafting separate recommendations for listed companies to utilize professional third-party custody firms. Officials noted that the exact scope of these custody requirements is currently under active review, signaling a clear regulatory direction toward establishing secure institutional asset management.
• National Tax Service to Outsource Custody: Following recent theft incidents, the National Tax Service (NTS) is reviewing plans to entrust seized crypto assets to external professional custody institutions. Handling high-value assets requires specialized infrastructure, further highlighting the growing necessity for professional custody solutions in the public sector.

▶ Sources: Byline Network | Herald Economy

II. Stablecoin: Anticipated Phase 2 Legislation and STO Settlement Integration

The government and the ruling party are accelerating discussions to shape stablecoin regulations and expand their market utility.

• Unified Stablecoin Bill and Tech Firm Participation: The ruling party is expected to finalize its unified draft for the Phase 2 Digital Asset Basic Act this week, featuring a bank-led consortium structure. While the final legislative passage may face some ongoing political debates regarding ownership regulations, the FSC notably announced plans to lower entry barriers for innovative tech companies, expanding the KRW stablecoin ecosystem beyond traditional finance.
• Integrating STO and Stablecoin Settlements: Through the newly launched Security Token Offering (STO) consultative body, the FSC has begun designing the regulatory framework, actively exploring mid-to-long-term innovations to integrate stablecoins as the primary settlement method for tokenized securities.

▶ Sources: Edaily | ZDNET Korea | Yonhap News