South Korea’s Financial Services Commission (FSC) has officially ended a nearly nine-year prohibition on corporate cryptocurrency investments, introducing new guidelines that permit listed companies and professional investors to allocate a portion of their capital to digital assets. The rules — part of the government’s 2026 Economic Growth Strategy — represent one of the most significant policy shifts in the country’s approach to cryptocurrency markets.
New Corporate Crypto Investment Framework
Under the newly finalized guidelines, publicly listed firms and registered professional investment corporations may now invest up to 5 % of their equity capital annually in cryptocurrencies included among the top 20 by global market capitalization — provided those assets are traded on South Korea’s five major domestic exchanges. Approximately 3,500 entities are expected to qualify for participation once the rules take effect.
The allowable investment scope has drawn attention from industry insiders, who note the 5 % cap could unlock significant amounts of institutional capital long barred from entering the space. However, critics argue the limit is relatively conservative compared with policies in markets like the United States, Japan and the European Union, where similar restrictions do not apply.
Eligible Digital Assets and Ongoing Stablecoin Discussion
The regulatory framework currently restricts eligible assets to the top 20 cryptocurrencies by market capitalization, based on listings on local exchanges. While major tokens such as Bitcoin (BTC) and Ethereum (ETH) are included under this classification, whether dollar-pegged stablecoins such as USDT or USDC will be permitted remains under discussion among authorities and industry stakeholders.
The FSC’s guidelines also require exchanges to implement staggered execution and order size limits in order to maintain market stability and manage potential price impacts arising from larger institutional orders.
Policy Rationale and Economic Goals
The move to lift the ban reflects broader efforts by Seoul to integrate digital assets into the mainstream financial ecosystem as part of its Economic Growth Strategy for 2026. Regulators have cited the need to attract institutional capital, stem the outflow of investment overseas, and align domestic policy with international trends in regulated digital asset markets.
South Korea’s previous ban on corporate crypto holdings, in place since shortly after the 2017 market surge, was initially aimed at curbing speculative excess and protecting retail investors from potential losses.
Industry Reaction and Market Impact
The new rules have been welcomed by supporters who believe institutional involvement could enhance market depth and liquidity, as well as foster more robust institutional infrastructure. Corporate treasury and investment departments that have long been restricted may now contemplate direct cryptocurrency exposure within regulated limits.
At the same time, some industry participants argue that regulatory uncertainty — particularly around stablecoin eligibility and ongoing discussions regarding the Digital Asset Basic Law — could temper immediate institutional inflows until policy details are fully resolved.
Looking Ahead
As the guidelines roll out, experts anticipate gradual uptake by eligible entities, accompanied by enhancements in compliance frameworks and risk management practices for corporate investors. South Korea’s regulatory shift positions the nation among a growing group of jurisdictions that are opening domestic markets to institutional crypto participation, while balancing investor protection and market integrity.
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