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South Korea is set to lift its long-standing ban on corporate cryptocurrency investments, marking a significant shift in its digital asset policies. Local reports say the Financial Services Commission (FSC) is finalizing rules that would let listed companies and professional investors buy crypto for the first time since 2017. The official guidelines are expected by January or February.
Companies Can Invest Up to 5% of Capital in Crypto
Under the proposed rules, eligible companies would be allowed to invest up to 5% of their equity capital in digital assets. This ends nearly a decade of restrictions for institutions. The original ban was aimed at preventing money laundering and protecting markets during crypto’s early days.
The FSC is taking a cautious approach. Companies would only be allowed to invest in the top 20 cryptocurrencies by market value. All transactions must happen through South Korea’s five largest regulated exchanges. The inclusion of stablecoins like USDT is still being discussed, as regulators weigh risks around transparency and capital flow.
Potential Boost for Bitcoin, Ethereum, and Local Crypto Market
If implemented, this policy could bring large amounts of domestic capital into the crypto market. Big companies like Naver, which have substantial equity, could legally invest in Bitcoin, Ethereum, and other top assets. Experts say this could also speed up the approval of spot Bitcoin ETFs and the development of a national stablecoin.
The new rules are expected to benefit local blockchain startups and crypto-focused companies. Until now, major firms often invested in crypto ventures abroad due to domestic restrictions. Allowing onshore investments could help retain capital and boost innovation within South Korea.
Community Reacts with Optimism
Online discussions show cautious optimism. Users on Reddit noted that easing corporate restrictions could increase liquidity and bring more institutional participation. Many believe the 5% limit and other safeguards keep risk manageable while helping the market mature.