South Korean regulators have granted a second crypto brokerage with a VASP license, suggesting they could lastly be able to let corporations purchase Bitcoin (BTC) and different cryptoassets.
Per Hanguk Kyungjae, the Monetary Intelligence Unit (FIU), has processed the appliance of the cryptoasset brokerage platform firm Blissful Block.
VASP License Approval: Opening the Door to Company BTC Shopping for?
The approval comes sizzling on the heels of the FIU’s determination to grant a VASP license to a different brokerage – named Waybridge – in late December final 12 months.
The FIU operates underneath the auspices of the nation’s high regulator, the Monetary Providers Fee (FSC).
The unit is the one physique within the nation with the ability to grant corporations digital asset service supplier (VASP) licenses.
Till the previous few weeks, solely a handful of crypto exchanges have managed to safe VASP permits.
Since Seoul began policing the crypto trade in earnest in 2018, all crypto brokerages have needed to shut up store.
Nevertheless, the FSC seems prepared to melt its famously hardline stance on crypto regulation in 2025.
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— The Korea Herald 코리아헤럴드 (@TheKoreaHerald) January 20, 2025
Regulator Speaks of ‘Gradual’ Reform
The FSC has refused to commit itself to crypto deregulation. Nevertheless it has prompt it may “evaluate” its coverage on permitting corporations to purchase BTC and different cryptoassets with their steadiness sheets.
The Blissful Block approval seems to be a step on this path. The agency is “a digital belongings brokerage firm” that launched in Might 2022.
It calls itself a “digital securities firm” and has reportedly been “getting ready digital asset brokerage companies for firms.”
Its high-profile backers embody SK Securities, and it additionally has partnership offers with abroad gamers like Fireblocks and Kaico.
The agency can also be creating a platform for “institutional buyers,” with built-in administration, custody, and private crypto pockets companies.
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Corporations Eager on Crypto
The corporate additionally plans to offer over-the-counter (OTC) brokerage companies for crypto orders and “bulk transactions for establishments.”
A variety of South Korean corporations are considered eager to purchase BTC and different tokens.
Nevertheless, they’re at present unable to take action, as FSC tips to banks successfully prohibit monetary establishments from letting company prospects open crypto exchange-linked accounts.
It is because monetary regulators have dominated that digital belongings “aren’t monetary funding merchandise underneath the phrases of the Capital Market Act.”
Nevertheless, the identical media outlet wrote that the FSC has “been transferring to ease rules associated to digital belongings, albeit slowly, this 12 months.”
The FSC has said that will probably be “gradual” with the method. Business insiders suppose that public our bodies will first be granted the fitting to promote crypto donations earlier than different corporations get the inexperienced gentle.
An unnamed South Korean monetary funding trade insider advised the media outlet:
“Presently, even within the US, conventional securities corporations don’t deal with receiving orders for cryptoassets managed by asset administration corporations.”
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— The Korea Instances (@koreatimescokr) January 19, 2025
Bitcoin ETF Approval Subsequent?
The identical insider added that the transfer may additionally finally see the FSC open the door to Bitcoin spot ETF approval. The supply mentioned:
“If home digital asset ETFs are launched, there’ll naturally be a necessity for our bodies who can execute institutional investor orders. Crypto brokerage corporations have been getting ready for that very function. I imagine the FSC accredited the [VASP application] as a result of it deemed it mandatory [for Bitcoin ETF approval].”
Nevertheless, the FSC has made cagey statements on calls to approve Bitcoin spot ETFs. Earlier this 12 months, the FSC Director Kwon Dae-young mentioned that Bitcoin ETF approval could be going “a step too far.”
However Kwon conceded that the federal government was “totally conscious of the adjustments [in crypto regulation] which are going down globally.”
In the meantime, Blissful Block CEO Kim Gyu-yoon mentioned that the agency was “planning to pursue enterprise according to the coverage path of monetary regulators.”
Kim promised to “reply to main points equivalent to investor safety […], anti-money laundering, and taxation points.”
The CEO additionally talked about the necessity to “perform enterprise in accordance” with regulators’ “schedule for introducing spot ETFs.”
The corporate’s look forward to VASP approval has been an extended one. Round a 12 months and 5 months have handed since Blissful Block first submitted its software to the FIU.
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