South Korea’s Financial Services Commission (FSC) has reportedly finalized guidelines allowing listed companies and professional investors to trade cryptocurrencies.
The move ends a nine-year ban on corporate investments in cryptocurrencies and complements the government’s broader “Economic Growth Strategy 2026,” which includes legislation on stablecoins and one-off approvals for crypto ETFs announced last week.
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Business investment framework
According to FSC disclosure guidelines cited in a local media article, eligible companies can invest up to 5% of their equity per year. Investment objectives are limited to the top 20 cryptocurrencies by market capitalization on the five major Korean exchanges.
Around 3,500 entities will have access to the market once the rules take effect. These include publicly traded companies and registered professional investment companies.
Whether dollar-pegged stablecoins, such as Tether’s USDT, qualify remains under discussion. Regulators will also require exchanges to implement tiered execution and order size limits.
Market context
The guidelines mark the first regulatory green light for corporate investment in crypto since 2017. Authorities have banned institutional participation due to concerns about money laundering.
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The prolonged ban has shaped the Korean crypto market in different ways. Retail investors represent almost 100% of trading activity. Capital flight reached 76 trillion won ($52 billion) as traders sought opportunities overseas. The contrast with mature markets is striking. At Coinbase, institutional trading accounted for over 80% of volume in the first half of 2024.
Industry players expect the opening to accelerate the momentum of domestic won-denominated stablecoin and spot Bitcoin ETFs.
Industry decline
While welcoming the policy change, industry players say the 5% cap is overly conservative, citing that the US, Japan, Hong Kong and the EU impose no comparable limits on companies’ crypto holdings.
Critics warn that the restriction could prevent the emergence of digital asset treasury companies, companies like Japan’s Metaplanet that create enterprise value through the strategic accumulation of Bitcoin.
“Applying excessive regulations only to cryptocurrencies could leave Korea behind as global markets accelerate,” an industry official told the news outlet.
Next steps
The FSC plans to release final guidelines by January or February. The implementation timeline will align with the Basic Law on Digital Assets, which is scheduled for legislative introduction in the first quarter of 2025. Commercial trading is expected to begin by the end of the year.
