Korea Lifts 9-Year Ban on Corporate Crypto Investments, FSC Approves Framework

The FSC finalizes guidelines enabling listed firms and professional investors to invest up to 5% of annual equity in top-20 crypto assets, with exchange order-size limits.

Rich by Coin

2026-01-12

South Korea’s Financial Services Commission has finalized guidelines that would allow listed companies and registered professional investors to trade cryptocurrencies, effectively ending a nine-year ban on corporate crypto exposure. The move also complements the government’s broader 2026 growth strategy by supporting recently announced stablecoin legislation and the approval of spot crypto ETFs.

Under the new framework, eligible firms may invest up to 5% of their annual equity in cryptocurrencies, with investments limited to the top 20 crypto assets by market capitalization listed on Korea’s five major exchanges. Regulators expect roughly 3,500 corporations to enter the market, including listed companies and registered professional investment firms. The status of dollar-linked stablecoins such as USDT remains undecided, and exchanges will be required to implement partial executions and limits on order sizes. The final guidelines are expected to be published in January or February, with implementation linked to the Digital Asset Basic Act proposed for 2025.

This policy marks the first time since 2017 that corporate crypto investments are officially permitted. Regulators have previously barred institutional participation due to money-laundering concerns. Industry observers say the move could accelerate KRW-backed stablecoins and domestic spot Bitcoin ETFs, though critics argue that the 5% cap is overly protective. Relative to the United States, Japan, Hong Kong, and the EU, Korea’s cap remains unusually restrictive.

The policy also highlights ongoing concerns about the balance between openness and regulation; some warn that such limits could hinder the emergence of “digital asset finance” firms investing in Bitcoin, akin to Japan’s MetaPlanet. The domestic market has long been dominated by individual investors, with capital outflows totaling about $52 billion as traders sought overseas opportunities. Coinbase accounted for more than 80% of institutional trading in the first half of 2024, underscoring the current global dynamics.