South Korea to Reinstate Corporate Crypto Investments After Nine Years

South Korea's FSC intends to reinstate corporate cryptocurrency trading following a nine-year prohibition. 3,500 firms may invest up to 5% of their stock in popular cryptocurrencies.

The South Korean financial watchdog is poised to ease its nine-year prohibition on corporate cryptocurrency investments. This is a dramatic shift in the country's attitude toward digital assets, allowing firms to enter the cryptocurrency market.

This is part of South Korea's vision to promote the growth of its cryptocurrency industry. A new regulatory framework is being developed to govern how institutions can access digital assets.

South Korea FSC Unveils New Rules for Corporate Crypto Investments

According to local media, South Korea's Financial Services Commission (FSC) is drafting new standards that would allow corporate and institutional investors to trade digital assets. With this measure, the country lifts the nine-year-old ban on corporate cryptocurrency investments.

Significantly, this action is consistent with the country's 2026 Economic Growth Strategy. The country is encouraging the formation of the crypto market as part of a larger strategy, through corporate investments and ETF launches.

Interestingly, this event is regarded as a significant milestone because more than 3,500 enterprises in the country are projected to have access to cryptocurrency investments. According to the new standards, qualifying enterprises will be able to invest 5% of their equity capital in cryptocurrency each year. They could only invest in the top 20 cryptocurrencies listed on South Korea's crypto exchanges. The regulator is still considering the addition of dollar-backed stablecoins such as Tether's USDT and Circle's USDC.

The 5% Limit is Still Restrictive

Although the crypto industry generally supports South Korea's policy adjustment, they say that the 5% cap on corporate crypto investments is overly restrictive. They cited the progressive position of other global powers such as the United States, Japan, the United Kingdom, and Hong Kong, which do not impose such limits.

While South Korean digital asset enthusiasts hope to see the emergence of digital asset treasuries (DATs), they argue that restrictions on corporate crypto investments may stymie such efforts. A person with industry experience said, “Applying excessive regulations only to crypto could leave Korea behind as global markets accelerate.”

South Korea's Broader Crypto Ambitions Take Shape

South Korea's recent step is part of a larger effort to cement its status as a global cryptocurrency hub. The government has already taken steps to increase stablecoin acceptance in the country, with key banks preparing to issue won-backed tokens.

Another key move is the country's intention to establish cryptocurrency exchange-traded funds. The government has declared plans to authorize and sell cryptocurrency ETFs this year.

Throughout last year, South Korea and its financial authorities implemented steps to promote innovation while protecting investors. With new advancements on the way, the country's crypto ecosystem is about to undergo a significant upheaval.