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Starting next month, nonprofit organizations, including universities, and cryptocurrency exchanges in South Korea will be allowed to sell digital assets under new government guidelines. For exchanges, however, such sales will be strictly limited to covering operational expenses.

The Financial Services Commission (FSC) announced the rules earlier this month at the fourth meeting of its Virtual Asset Committee, held at the Government Complex Seoul. The guidelines establish detailed procedures for nonprofits seeking to liquidate donated virtual assets. Initially, eligibility will be limited to nonprofit corporations with at least five years of history and subject to external audits. These organizations will be required to form an internal "Donation Review Committee" to assess the appropriateness of each donation and its liquidation plan. They must also verify the purpose and source of the donated funds.

Only cryptocurrencies traded on at least three domestic, won-based exchanges will be eligible for donation, and all contributions must be made through domestic accounts. As a general rule, nonprofits will be required to convert donated crypto assets into cash immediately upon receipt.

For exchanges, the guidelines aim to minimize market disruption and prevent conflicts of interest with users. Only platforms registered as virtual asset service providers (VASPs) under the Specific Financial Information Act will be permitted to sell assets—and only to raise funds for operational expenses.

Eligible coins are limited to the top 20 by market capitalization among those listed on five major won-based exchanges. Additional requirements include a daily sales cap (no more than 10% of the total planned amount), a prohibition on using their own platforms to sell assets, and mandatory internal oversight, such as board approval. Exchanges must also disclose their sale plans in advance and publish post-sale reports detailing proceeds and how funds are used.

Both nonprofit organizations and crypto exchanges will be able to open designated accounts for digital asset sales starting in May. “We plan to finalize guidelines for customer identity verification in crypto transactions involving nonprofits and exchanges by the end of May,” the FSC said. “In the second half of the year, we will also announce plans to issue verified accounts for publicly listed companies and certified institutional investors.”

In addition, the government unveiled new regulations aimed at curbing “listing spikes”—sharp price surges triggered by limited coin supply at launch—as well as speculative meme coins. Under the new rules, a minimum supply must be secured before trading begins, and market orders will be restricted for a certain period afterward. Minimum supply thresholds will be based on historical data from coins that have avoided such volatility. Meme coins, which often lack intrinsic value, will only be eligible for listing if they meet criteria such as active community engagement or a trading history on reputable overseas exchanges.


Joo-Young Jeon aimhigh@donga.com