South Korea’s Financial Services Commission (FSC) has reportedly finalized guidelines to allow listed companies and professional investors to trade in cryptocurrencies.
The move ends a nine-year ban on corporate crypto investments and complements the government’s broader 2026 Economic Growth Strategy announced last week, which includes stablecoin legislation and the approval of spot crypto ETFs.
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Corporate investment framework
Based on FSC reporting guidelines cited by local media reports, eligible companies can invest up to 5% of their equity annually. Investment targets are limited to the top 20 cryptocurrencies by market capitalization on South Korea’s five major exchanges.
When this rule takes effect, approximately 3,500 entities will gain market access. These include listed companies and registered professional investment corporations.
Whether dollar-pegged stablecoins like Tether’s USDT qualify is still under discussion. Regulators will also require exchanges to introduce staggered executions and order size limits.
market situation
The guidelines mark the first regulatory green light for corporate crypto investments since 2017. Authorities banned institutional investors from participating due to concerns about money laundering.
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The long-term ban has uniquely shaped South Korea’s crypto market. Retail investors account for almost 100% of trading activity. Capital flight reached 76 trillion won ($52 billion) as traders sought offshore opportunities. This is in contrast to mature markets. At Coinbase, institutional trades accounted for more than 80% of trading volume in the first half of 2024.
Industry insiders expect this launch to accelerate momentum for won-denominated stablecoins and domestic spot Bitcoin ETFs.
Industry backlash
While industry insiders welcomed the change in policy, they argued that the 5% cap was overly conservative, as the United States, Japan, Hong Kong and the European Union do not have comparable restrictions on corporate holdings of cryptocurrencies.
Critics have warned that the restrictions could prevent the emergence of digital asset treasury companies like Japan’s Metaplanet, which build corporate value through strategic Bitcoin accumulation.
“Applying excessive regulations only to virtual currencies could leave South Korea behind as the global market accelerates,” one industry source told the media.
next step
The FSC is expected to publish final guidelines in January or February. The implementation date will coincide with the Digital Asset Basic Law, which is scheduled to be enacted into law in the first quarter of 2025. Corporate transactions are expected to begin by the end of the year.
