"Corporate Participation in the Digital Asset Market Requires Anti-Money Laundering Measures"

Published 22 Jul.2025 07:05(KST)

Academic Conference on Legal Challenges of Digital Assets

As listed companies and registered professional investors prepare to enter the digital asset market, concerns have been raised about money laundering, as well as issues related to disclosure, accounting, and taxation that must be considered.

On July 18, Ryu Kyungeun (45, 36th class of the Judicial Research and Training Institute), a professor at Korea University Law School, stated at the 'Current Status of the Digital Asset Market and Major Legal Issues' academic conference, co-hosted by the Digital Finance Law Forum, the Blockchain Law Society, and the Digital Asset Exchange Alliance (DAXA), "Ordinary individuals can actively trade digital assets, and in other countries, corporations are also allowed to trade digital assets. However, in Korea, such transactions have been prohibited because the financial authorities have not explicitly permitted them."

'Current Status of the Digital Asset Market and Major Legal Issues' Academic Conference. Legal Newspaper.

She added, "Rather than seeing the implementation of the User Protection Act as having established an institutional foundation, the perspective on the digital asset industry has changed significantly. There is a growing view that this industry, rather than needing to be cultivated, should be controlled and regulated. At the same time, there is also an expanding perspective that it is a promising industry and should be more broadly permitted. This shift in views seems to have led to allowing corporate participation in the digital asset market."

Previously, in February, the Financial Services Commission held the third Virtual Asset Committee meeting, where it finalized its review of policies regarding corporate participation in the virtual asset market and announced a phased approach to allowing such participation. According to the 'Roadmap for Corporate Participation in the Virtual Asset Market' announced by the FSC, from June, nonprofit organizations and virtual asset exchanges have been allowed to sell digital assets. In the second half of the year, listed companies and corporations registered as professional investors will also be permitted to trade digital assets.

Professor Ryu emphasized that when corporations participate in the digital asset market, several issues must be considered: concerns about money laundering, problems with foreign exchange transactions, and issues related to disclosure, accounting, and taxation. She stated, "The most important issue is money laundering. Currently, the Act on Reporting and Use of Certain Financial Transaction Information only addresses cases where cash is used to enter and exit the system. It does not address cases where digital assets are used to enter and cash is used to exit." She continued, "Anti-money laundering measures must also be developed for cases where shell companies trade digital assets. Only then can the scope of virtual asset trading be expanded to include general corporations."

She also noted, "Regarding corporate participation, issues such as foreign exchange transactions, accounting treatment, tax matters, and disclosure measures for holding digital assets as capital all require discussion. While allowing corporate participation can help make the digital asset market healthier, additional systems must be established to address any problems that may arise from permitting digital asset transactions."

In response, Kim Sungjin, head of the Virtual Asset Division at the Financial Services Commission, said, "The Virtual Asset Committee was able to move quickly because this could be pursued regardless of existing laws or regulations. The first issue reviewed was corporate participation, which would require a change in established practices. Currently, guidelines for the second phase of participation are being prepared."

Hwang Sewoon, senior research fellow at the Korea Capital Market Institute, stated, "Corporate accounts must include provisions related to anti-money laundering, and foreign exchange transactions must also be considered. In addition, issues related to disclosure, accounting treatment, and taxation must all be discussed and included."