Nonprofits, crypto exchanges allowed to sell crypto from June 1

Financial Services Commission Vice Chairman Kim So-young speaks during the virtual asset committee meeting at Government Complex Seoul, Thursday. Yonhap

Nonprofit organizations and cryptocurrency exchanges will be permitted to sell cryptocurrencies starting June 1, the Financial Services Commission (FSC) said Thursday.

The decision was finalized during the FSC’s fourth virtual asset committee meeting, where officials also unveiled new guidelines governing digital asset sales.

Under the rules, nonprofits with over five years of operational history and verified through external audits may sell donated digital assets. To ensure transparency, they must also form internal review committees to evaluate the suitability of donations and approve asset sale plans in advance.

To strengthen anti-money laundering efforts, all donations and transfers must be made through accounts at domestic, Korean won-based exchanges. This allows banks, exchanges and nonprofits to conduct overlapping customer verification procedures.

In contrast, the guidelines for cryptocurrency exchanges focus on minimizing market disruption and preventing conflicts of interest.

Exchanges will be restricted to selling only the top 20 digital assets by market capitalization, as listed on Korea’s five major won-based platforms. Proceeds may only be used to cover operational expenses.

Additional safeguards include a daily sales cap of no more than 10 percent of the total planned volume and a prohibition on selling through the exchange’s own trading platform. Exchanges must also obtain board approval for sales plans in advance and publish postsales reports detailing proceeds and their use.

The meeting also addressed speculative market practices, particularly those involving so-called "zombie coins" — tokens with minimal trading volume or market capitalization — and "meme coins," which lack clear purpose or value.

Exchanges are now required to establish their own listing standards and strengthen oversight of listed assets.

For example, trading support must be suspended for tokens with an average daily turnover below 1 percent or a global market capitalization under 4 billion won ($2.79 million) for more than 30 consecutive days.

Meme coins will only be eligible for trading support if they meet certain criteria, such as maintaining a minimum number of community members or demonstrating a sufficient trading history on a qualified overseas exchange.

To further mitigate excessive volatility — particularly the so-called “listing beam” phenomenon, in which newly listed tokens experience rapid speculative surges — temporary restrictions may be imposed on market orders during initial trading periods.

In addition, tokens must meet minimum circulating supply thresholds before being listed.

"The government plans to introduce customer verification protocols in May for virtual asset transactions involving nonprofit organizations and cryptocurrency exchanges," FSC said. "A plan to issue real-name accounts to listed companies and professional investors will also be announced in the second half of the year."