South Korea's financial regulatory authorities recently officially introduced new regulations, breaking a nine-year institutional crypto investment ban. According to the latest guidelines, listed companies and professional investment institutions are now permitted to participate in cryptocurrency trading, marking a significant shift in the country's attitude towards digital assets.
The new policy framework is quite cautious but groundbreaking: qualified corporate entities can allocate up to 5% of their net assets for crypto investments, limited to coins ranked in the top 20 by market capitalization on Korea's five major exchanges. This precise quota management reduces systemic risk while opening compliant channels for traditional financial institutions to enter the crypto market.
For Korea's Web3 ecosystem, this policy relaxation signifies the official entry of institutional capital. In comparison, many countries are still exploring similar frameworks, and Korea's move may serve as a reference model for the Asian market.
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South Korea's financial regulatory authorities recently officially introduced new regulations, breaking a nine-year institutional crypto investment ban. According to the latest guidelines, listed companies and professional investment institutions are now permitted to participate in cryptocurrency trading, marking a significant shift in the country's attitude towards digital assets.
The new policy framework is quite cautious but groundbreaking: qualified corporate entities can allocate up to 5% of their net assets for crypto investments, limited to coins ranked in the top 20 by market capitalization on Korea's five major exchanges. This precise quota management reduces systemic risk while opening compliant channels for traditional financial institutions to enter the crypto market.
For Korea's Web3 ecosystem, this policy relaxation signifies the official entry of institutional capital. In comparison, many countries are still exploring similar frameworks, and Korea's move may serve as a reference model for the Asian market.