Listed companies and professional investment firms would be eligible to participate. Investment targets would be limited to assets within the top 20 by semiannual market capitalization, as disclosed by Korea’s five major crypto exchanges, with the specific assets chosen by cryptocurrency operators. It is still under discussion whether dollar-denominated stablecoins such as Tether’s USDT will be included as permissible investments. This marks the first relaxation in nine years since the 2017 ban over money laundering and market overheating, and safeguards are being put in place to minimize volatility, though officials warn that a cap not mirrored overseas could dampen capital inflows and hinder the emergence of specialized crypto investment firms.
Industry participants welcomed corporate access but argued that the cap is overly restrictive and could limit capital inflows and the emergence of specialized crypto investment firms. Should corporate trading proceed, the domestic market could gain liquidity and accelerate the development of related products, including a KRW-backed stablecoin and Bitcoin spot ETFs. For example, if a major company like Naver invested 5% in Bitcoin at about 130 million won per unit, it could hold more than 10,000 units.
Regulators have established corporate crypto trading guidelines centered on a 5% cap on annual deposits or investments relative to a firm’s own capital. The United States and Japan have no corporate investment restrictions, while the European Union and Singapore allow broader corporate crypto exposure. Some market participants see the framework as appropriately cautious, while others worry the 5% cap could limit capital inflows. If corporate trading proceeds, it could accelerate the launch of a KRW-backed stablecoin and Bitcoin spot ETFs.
Leave a Reply