South Korea’s 9-year “Corporate Cryptocurrency Investment Ban” is about to come to an end. According to reports, the Korea Financial Services Commission (FSC) is drafting regulatory guidelines for corporate investment in cryptocurrencies, with an expected investment cap set at 5%, symbolizing Korea’s shift from strict suppression to a more orderly and institutionalized openness.
According to Seoul Economic Daily, the FSC has preliminarily completed cryptocurrency trading guidelines for listed companies and professional investors, with the final version expected to be released in January or February of this year. If progress goes smoothly, Korean companies could legally include cryptocurrencies on their balance sheets as early as this year.
To prevent excessive corporate speculation leading to financial risks, this draft sets strict “firewalls”:
- Investment Cap: Companies and professional investors can allocate up to 5% of their shareholder equity (capital from shareholders) annually for purchasing cryptocurrencies.
- Investment Scope: Currently limited to the top 20 cryptocurrencies by market capitalization.
- Stablecoin Controversy: The inclusion of USD-pegged stablecoins such as USDT and USDC in the legal purchase list is still under discussion.
Presto Research Associate Min Jung pointed out, “This will inject considerable liquidity into the market, but since the scope is limited to the top 20 cryptocurrencies by market cap, it is expected that funds will mainly flow into Bitcoin and Ethereum, with limited benefits for competing coins.”
This new guideline continues the recent trend of the Korean FSC gradually lifting the practical ban on “institutions trading crypto assets.” As early as mid-2025, Korea has allowed non-profit organizations and cryptocurrency exchanges to sell their held cryptocurrencies; regulators have also announced plans to open up trading to listed companies and professional investors in the second half of 2025.
To prevent market volatility caused by large transactions, the new guidelines will also include mechanisms such as “order splitting” and “price limits.” Min Jung stated, “Although the 5% limit seems conservative, for companies taking their first steps, they are likely to adopt a cautious approach initially, so it does not constitute a substantial obstacle.”
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