South Korea Sets Guidelines for Nonprofits and Exchanges on Virtual Asset Sales

According to Foresight News, the South Korean Financial Services Commission (FSC) has finalized guidelines for the sale of virtual assets by nonprofit organizations and cryptocurrency exchanges. Starting in June 2025, nonprofits will be allowed to sell cryptocurrencies received through donations, with the requirement that these assets be liquidated immediately upon receipt. Exchanges will also be permitted to liquidate crypto assets obtained from user fees, with mandatory disclosure of the sale results and the use of proceeds. To mitigate money laundering risks, the FSC mandates that exchanges and banks enhance their Know Your Customer (KYC) procedures for new institutional clients, scrutinizing the sources of funds and the purposes of transactions. Additionally, the FSC will monitor the activities of institutions and their CEOs for potential money laundering activities.