South Korea Lifts Longstanding Corporate Crypto Ban, Allows Firms to Invest Up to 5% of Capital

South Korea’s financial regulators have taken a significant step toward institutional crypto inclusion by ending a nearly nine-year prohibition on corporate investment in digital assets. Under new guidelines finalized by the country’s Financial Services Commission (FSC), publicly listed companies and registered professional investors can now allocate up to 5% of their equity capital annually into cryptocurrencies — a major shift from strict restrictions that were in place since 2017.

Coinccino Coinccino
Jan 12, 2026 - 12:28
South Korea Lifts Longstanding Corporate Crypto Ban, Allows Firms to Invest Up to 5% of Capital

What the New Rules Say

  • Corporate Access: Roughly 3,500 eligible entities — including publicly traded firms and professional investment corporations — will now be able to invest in digital assets traded on South Korea’s major exchanges.
  • Investment Cap: Companies may dedicate up to 5% of their total equity each year toward digital assets, with eligible investments limited to the top 20 cryptocurrencies by market capitalization.
  • Market Safeguards: To maintain stability, exchanges will be required to implement staggered execution and order size limits on corporate trades.

This change is part of Seoul’s broader 2026 Economic Growth Strategy, which also includes plans for clearer stablecoin regulation and spot crypto ETFs, signaling a more integrated approach to digital finance.

Why It Matters

For nearly a decade, corporate involvement in South Korea’s crypto markets was effectively barred over concerns about speculation, money laundering, and financial risk. The new policy shift opens the door for institutional capital to flow into digital assets domestically, potentially reducing capital flight to overseas platforms and aligning South Korea with global markets like the U.S., Japan, and the EU — where similar restrictions do not exist.

However, the 5% investment cap has drawn both optimism and criticism. While it marks progress — enabling boardrooms to allocate strategic exposure to crypto — many in the industry argue that the limit remains conservative compared to international peers. Some believe it could temper the growth of corporate digital asset treasury strategies, which have taken off in other markets where institutions accumulate and hold crypto at scale.

What’s Ahead

  • Policy Finalization: FSC guidelines are expected to be fully implemented as regulatory frameworks like the Digital Asset Basic Act take shape.
  • Stablecoin Eligibility: Whether dollar-pegged stablecoins like USDT or USDC count toward the 5% cap remains under discussion.
  • Institutional Trends: With barriers easing, more companies may begin testing digital asset strategies, potentially reshaping South Korea’s institutional investor landscape.

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