South Korea Reopens Corporate Doors to Crypto After Nine Years—New 5% Investment Cap Rules

Source: CoinEdition Original Title: South Korea Reopens the Corporate Door to Crypto After Nine Years Original Link: South Korea is reopening the doors to corporate cryptocurrency investing after nearly a decade of tight restrictions, a shift that could redraw the country’s digital asset landscape and pull institutional money into a market long dominated by individual traders.

Regulators have formally lifted a 2017 ban, allowing listed companies and professional investors to hold cryptocurrencies subject to clearly defined limits.

Caps, Safeguards, and Asset Limits

Under the new rules, firms may allocate up to 5% of their equity capital to digital assets, with investments restricted to the top 20 cryptocurrencies by market capitalization listed on South Korea’s five major exchanges. Roughly 3,500 companies are expected to be eligible.

The policy represents the final stage of a reform plan released last year by the Financial Services Commission, which sets financial policy. Officials say detailed trading guidelines have already been circulated within a public-private task force and that final rules should be issued soon, opening the market to corporate participation within the year.

Guardrails for Careful Opening

Regulators are moving carefully. The 5% cap is designed to limit balance-sheet risk and curb excessive speculation by companies. For now, the focus is on large, liquid assets such as Bitcoin and Ethereum, while the inclusion of dollar-linked stablecoins like USDT remains under review.

Authorities are also planning technical safeguards, including limits on certain order types and controls on trades that stray too far from market prices, measures intended to dampen volatility as institutional liquidity enters the system.

South Korea’s original ban was introduced amid fears of money laundering and runaway speculation. Since then, retail investors have come to dominate the market, a dynamic that regulators say contributed to sharp price swings and persistent capital outflows.

ETFs Back on Agenda

The easing of restrictions has brought back discussions over spot cryptocurrency exchange-traded funds. Digital assets remain excluded as eligible ETF underlyings under the Capital Markets Act, but in the government’s newly released 2026 Economic Growth Strategy, officials have confirmed that amendments are under study.

Reviews are already underway on custody, pricing, and investor protection frameworks, laying groundwork for potential approvals, likely starting with Bitcoin-linked products.

Global Capital Takes Notice

Foreign investors are also leaning in. Major international crypto venture funds have recently established a Seoul presence, citing South Korea’s deep pool of developers and one of the world’s most active retail crypto markets.

“We plan to explore new ways to strengthen our position in Asia and expand our geographical influence,” according to statements from international crypto investment firms. Other venture funds and accelerators are expanding local operations.