Seoul National University (SNU) will soon be able to convert cryptocurrency donations into cash, following a policy shift by South Korea’s financial regulators. The university received a 1 billion won ($750,000) crypto donation from gaming company Wemade in 2022 but has been unable to liquidate it due to government restrictions on institutional crypto transactions.
The Financial Services Commission (FSC) announced on Feb. 13 that, starting in April, nonprofit organizations—including designated donation entities and universities—will be allowed to sell cryptocurrency holdings. The decision marks a gradual easing of restrictions on corporate crypto transactions, which have been effectively banned since 2017.
Until now, only individuals in South Korea could trade digital assets, leaving institutions unable to cash out cryptocurrency donations. SNU, Korea University, Sogang University, and Dongseo University collectively hold an estimated 6 billion won ($4.5 million) in crypto assets, largely unusable due to existing regulations.
Under the new framework, universities and nonprofits will be able to open real-name accounts at cryptocurrency exchanges to sell their holdings, though they will not be permitted to invest in crypto. Additionally, major crypto exchanges such as Upbit and Bithumb will be allowed to convert transaction fees collected in cryptocurrency into cash for operational expenses. Upbit alone generated approximately 182.2 billion won ($137 million) in crypto fee revenue in the third quarter of 2024.
The FSC also announced that, starting in the second half of this year, publicly traded companies classified as professional investors under the Financial Investment Services and Capital Markets Act—including Samsung Electronics and Hyundai Motor—will be allowed to invest in cryptocurrency. This move is expected to boost market liquidity and intensify competition among local exchanges seeking corporate funds. An estimated 3,500 companies, including around 2,500 listed firms, will qualify for crypto investment under the new rules.
However, financial institutions such as banks, asset management firms, and private equity funds will remain barred from crypto transactions. FSC Vice Chairman Kim So-young said the gradual approach is necessary to minimize risks, noting concerns that crypto-related volatility could impact the broader financial system.
The government’s decision aligns with global trends, as many countries already permit corporate cryptocurrency investments. However, South Korean regulators remain cautious, leaving the issue of whether to allow financial institutions to invest in crypto as a long-term consideration. The ongoing restrictions also mean that the introduction of a spot cryptocurrency exchange-traded fund (ETF) in South Korea is unlikely in the near future.
