Currently, cryptocurrency trading in Korea operates on a system where banks and cryptocurrency exchanges jointly verify a customer’s real identity (KYC). Once this process is completed, customers deposit Korean won (KRW) through a linked bank account and trade cryptocurrencies in KRW on the exchange.
Accordingly, in order to trade cryptocurrencies in Korea, a user must have both a real-name bank account and a real-name exchange account that are officially linked to each other.
Under the “one exchange, one bank” principle, KRW deposits and withdrawals are only possible through the designated partner bank of each exchange. Deposits from or withdrawals to other banks are not permitted.
Since 2018, Korean financial authorities have restricted—and in practice completely prohibited—the opening of corporate accounts for cryptocurrency trading. As a result, corporations and foreigners are effectively barred from trading cryptocurrencies in Korea to this day.
While this prohibition is not explicitly stipulated in any statute, it has been implemented through a combination of regulatory guidance from authorities and conservative positions taken by banks. This has resulted in what is often referred to as a form of “shadow regulation.”
A more problematic issue is that cryptocurrency exchanges themselves prohibit corporations and foreigners from opening trading accounts. This results in discriminatory treatment, as corporations and foreigners may open bank accounts, yet are unable to open exchange accounts. Although these restrictions appear to stem from regulatory guidance, their clear legal basis remains questionable.
In fact, the primary legal framework governing cryptocurrencies in Korea—the Act on Reporting and Using Specified Financial Transaction Information (the “Specified Financial Information Act”)—presupposes that corporations and foreigners are eligible to open accounts.
For example, Articles 5-2 (Customer Due Diligence Obligations) and 5-3 (Information Provision Obligations) of the Act are structured on the assumption that both corporate and foreign customers may open accounts.
Moreover, while the Act explicitly includes virtual asset service providers (VASPs) within the category of “financial institutions, etc.,” it does not contain any provision that excludes corporate or foreign customers from the category of VASP customers. Therefore, there is no clear statutory basis for prohibiting corporate cryptocurrency trading.
For these reasons, cryptocurrency exchanges are legally capable of allowing trading by corporations and foreigners. However, in practice, exchanges appear reluctant to do so due to regulatory uncertainty and concerns over the position of financial authorities.
Prohibiting corporations and foreigners from opening exchange accounts based on vague justifications such as anti-money laundering or investor protection amounts to avoiding responsibility for addressing potential risks through proper regulation. When issues arise, the appropriate response is to correct and supplement the regulatory framework—not to impose a blanket prohibition.
Furthermore, as the enforcement of the Virtual Asset User Protection Act approaches, corporate demand for cryptocurrency trading continues to increase. Accordingly, calls for allowing corporate account openings are growing stronger.
Decent Law Firm consistently advocates for policy reform to protect the freedom of corporate activity, which lies at the core of a market-based economy. Even under unclear and evolving cryptocurrency regulations, Decent Law Firm actively supports companies engaged in virtual asset businesses from a long-term perspective. If you require legal advice or review related to cryptocurrency or virtual asset businesses, please feel free to contact us at any time.
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