South Korea upended nearly a decade of crypto policy by allowing listed companies and professional investors to place a portion of their balance sheets in digital assets. This change contrasts with the tightening of rules in Japan and Hong Kong. Asia no longer appears aligned on cryptocurrency regulation and the divergence is becoming clearer.
For the first time since 2017, South Korea’s Financial Services Commission (FSC) has finalized South Korean crypto rules that allow state-owned companies and approved investors to allocate up to 5% of their equity to cryptocurrencies.
The scope of application is deliberately restricted. Only the top 20 cryptocurrencies by market capitalization listed on Korea’s five regulated exchanges are eligible for the new framework.
SOUTH KOREA HAS ENDED ITS 9-YEAR BAN ON CORPORATE CRYPTO!
COMPANIES CAN NOW INVEST UP TO 5% OF THEIR CAPITAL IN THE TOP 20 CRYPTO ASSETS! pic.twitter.com/LWJ7Gk4cwc
– The Moon Show (@TheMoonShow) January 12, 2026
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What South Korea’s new crypto rules actually allow institutions to do
South Korea’s updated crypto rules open participation to around 3,500 companies and institutions once implementation begins. To manage risk, exchanges must use staggered executions and order limits to reduce sudden price fluctuations.
The policy is part of South Korea’s broader economic growth strategy for 2026, which also includes long-delayed stablecoin legislation and plans for spot Bitcoin ETFs.
The South Korean government expects economic growth of 2 percent this year, beating the Bank of Korea’s forecast of 1.8 percent, as domestic consumption stabilizes and exports strengthen.
Some industry voices argue that the 5% cap is restrictive compared to markets like the US or EU. Others see it as a deliberate safeguard that reflects South Korea’s cautious but structured approach to institutional crypto adoption.
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South Korea’s crypto rules are already applied in real-world transactions
The new framework already goes beyond theory. On June 1, 2025, Upbit, operated by Dunamu, supported the first official crypto sale by a nonprofit organization under South Korea’s updated crypto rules.
World Vision Korea sold 0.55 ETH, worth approximately ₩1.98 million, via Upbit’s KRW marketplace. Ethereum came from a donation campaign supporting students from low-income households.
By linking its K-Bank corporate account to Upbit, the NGO was able to convert crypto donations into cash. The transaction showed how the FSC roadmap works in practice and how South Korean crypto rules apply to institutions beyond listed companies.
The move also fits into Korea’s broader push for cryptocurrency, including discussions around spot Bitcoin ETFs and delayed rules on stablecoins.
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Japan and Hong Kong are moving in the other direction
While Korea opens the door, its regional partners take some of it back, but in very different regulatory styles.
In Japan, regulators have signaled a broad overhaul of cryptocurrency oversight. The Financial Services Agency is shifting cryptocurrency regulation from a payments-focused framework to a stricter financial instruments and foreign exchange law, treating digital assets more like securities. This includes stricter disclosure rules and investor protection, with the changes expected to take effect by 2026.
Japan is not excluding crypto, but it is raising the bar on corporate exposure and integrating digital assets into the traditional financial regime.
Hong Kong’s approach is more nuanced. The city remains a hub for regulated products such as spot crypto ETFs, but its securities watchdog and stock exchange have strengthened guardrails around companies’ crypto holdings and exposure to stablecoins. In 2025 alone, several listing applications related to large Bitcoin holdings were rejected due to fears of volatility.
Asia is testing two paths at once. Over the next year, the market will show whose money is trusted the most.
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The article South Korea Allows Businesses to Buy Crypto as Japan, Hong Kong Pull Out appeared first on 99Bitcoins.
