South Korea’s financial regulators are preparing a major change to corporate cryptocurrency investment rules that would allow publicly listed companies and professional investors to allocate a portion of their capital to digital assets for the first time in nearly a decade. The Financial Services Commission (FSC) has drafted guidelines that would permit listed firms to invest up to 5% of their equity capital in cryptocurrencies, ending a long‑standing prohibition and opening the door to institutional participation in digital markets.
The new framework, shared with a public‑private crypto working group in early January, targets a cautious reopening of the market. Under the proposal, eligible firms would be allowed to use a limited portion of their balance sheets to hold crypto assets, but only those ranked among the top 20 cryptocurrencies by market capitalisation as traded on South Korea’s five largest regulated exchanges. Whether dollar‑pegged stablecoins such as Tether’s USDT will be included remains under regulatory discussion.
The move marks a significant shift from policies dating back to 2017, when regulators initially banned corporate crypto holdings amid concerns over speculative excess, money laundering, and market instability. The 5% cap is designed to manage risk on corporate balance sheets while providing a clear, regulated path for companies that want to explore digital assets as part of treasury management or investment strategy.
Industry analysts note that the proposed changes would affect roughly 3,500 listed companies and registered investment firms once fully implemented, potentially unlocking institutional capital that has long been sidelined from South Korea’s domestic crypto ecosystem. However, some observers caution that the 5% limit, relatively conservative compared with more permissive frameworks abroad, may constrain how aggressively firms can deploy corporate funds into digital assets.
Final guidelines are expected to be released between January and February 2026, with trading likely to begin later in the year once the regulatory framework is finalised. The policy shift is part of a broader overhaul of South Korea’s digital asset laws, which also include work on a Digital Asset Basic Act and other measures designed to integrate crypto markets into the national financial system while protecting investors and managing systemic risks.
South Korea’s stablecoin legislation faces another delay amid tegulatory uncertainty
