World Vision becomes 1st Korean corporate entity to trade crypto

Non-government organization World Vision Korea has sold its Ethereum holdings, becoming the first Korean legal entity to trade crypto after the South Korean government’s recent policy shift allowing corporate participation in virtual asset trading.

Dunamu Inc., operator of Korea’s largest cryptocurrency exchange Upbit, said on Sunday that the Korean operation of World Vision International sold 0.55 Etherium for 1.98 million won ($1,431).

The NGO offloaded part of its Ethereum holdings, which had been donated by Upbit users during a joint fundraising campaign with Dunamu to support underprivileged teenagers.

As World Vision's transaction marks the first corporate crypto sale since Korea unveiled a roadmap in February allowing certain organizations to trade virtual assets, more legal entities in the country are expected to follow suit.

Under the roadmap, nonprofit organizations, including universities and virtual asset exchanges, will be allowed to open bank accounts to sell such assets in the second quarter.

MORE RELAXATION AHEAD 

Several local universities, including Seoul National University, Korea University, Sogang University and Dongseo University, will be able to cash out a combined 1 billion won worth of WEMIX, a cryptocurrency donated by video game developer WeMade Co. in 2022.

Law enforcement authorities, such as the prosecution, National Tax Service and Korea Customs Service, which have opened 202 bank accounts since November to deposit confiscated criminal crypto assets, will also be allowed to sell these assets starting in the second quarter.

From the second half, about 3,500 listed companies and professional investment corporations registered under Korea’s Capital Markets Act will also be permitted to trade virtual assets, as the government gradually opens the market amid growing global adoption of cryptocurrencies.

The Korean government’s shift toward a more permissive stance on digital assets comes as major economies, including the US, move to integrate cryptocurrencies into formal regulatory frameworks, analysts said.

But financial institutions will remain excluded from the new policy, delaying the introduction of Bitcoin spot exchange-traded funds (ETFs) in Korea.

Korea’s cryptocurrency market surged to nearly 108 trillion won in the second half of last year, fueled by growing retail interest, with 20% of the country’s population now trading digital assets.

Write to Jin-Seong Kim at jskim1028@hankyung.com

Sookyung Seo edited this article.