South Korea Lifts Corporate Crypto Investment Ban
South Korea's Financial Services Commission (FSC) has officially ended its nine-year ban on corporate crypto investments, effective January 12, 2026, for listed companies and professional investors. This move is part of the government's broader "2026 Economic Growth Strategy" to foster institutional participation in the digital asset market.
New Corporate Investment Guidelines
Under the new regulatory framework, eligible corporate entities will be permitted to invest in digital assets, subject to specific limits and conditions.
Investment Cap: Corporations can invest up to 5% of their total equity capital annually.
Eligible Assets: Investments are restricted to the top 20 cryptocurrencies by market capitalization, as traded on South Korea's five major regulated exchanges.
Entities Involved: The policy shift is expected to grant market access to around 3,500 entities, including publicly listed firms and registered professional investment corporations.
Implementation Timeline: While the guidelines have been finalized, corporate trading is anticipated to commence by the end of 2026, aligning with the legislative introduction of the Digital Asset Basic Act in Q1 2025.
Market Context
The previous ban, imposed in 2017 due to concerns over speculative trading and money laundering, had left the South Korean crypto market primarily to retail traders. This resulted in significant capital outflows as domestic firms sought offshore investment opportunities.
Industry participants anticipate that the re-opening will boost institutional participation, potentially accelerating the development of a won-denominated stablecoin and domestic spot Bitcoin exchange-traded funds (ETFs). Some market participants, however, argue that the 5% investment cap is overly conservative compared to other regions like the U.S., Japan, and the EU, which currently impose no such limits on corporate crypto holdings.
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