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South Korea Reportedly Ends Nine-Year Corporate Crypto Ban

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Written & Edited by
Oihyun Kim

12 January 2026 01:44 UTC
  • Listed companies and professional investors can now allocate up to 5% of their equity to top-20 cryptocurrencies.
  • The guidelines end a nine-year ban, potentially unlocking tens of trillions of won from 3,500 eligible entities.
  • Critics argue the 5% cap is too restrictive; the US, Japan, and EU impose no such limits.
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South Korea’s Financial Services Commission (FSC) has reportedly finalized guidelines permitting listed companies and professional investors to trade cryptocurrencies.

The move ends a nine-year prohibition on corporate crypto investment and complements the government’s broader “2026 Economic Growth Strategy,” which includes stablecoin legislation and spot crypto ETF approvals announced last week.

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Corporate Investment Framework

Under the FSC’s news guidelines cited by a local media report, eligible corporations can invest up to 5% of their equity capital annually. Investment targets are limited to the top-20 cryptocurrencies by market capitalization on Korea’s five major exchanges.

Approximately 3,500 entities will gain market access once the rules take effect. These include publicly listed firms and registered professional investment corporations.

Whether dollar-pegged stablecoins such as Tether’s USDT qualify remains under discussion. Regulators will also require exchanges to implement staggered execution and order size limits.

Market Context

The guidelines mark the first regulatory green light for corporate crypto investment since 2017. Authorities banned institutional participation amid concerns about money laundering.

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The prolonged prohibition has shaped Korea’s crypto market in distinct ways. Retail investors account for nearly 100% of trading activity. Capital flight reached 76 trillion won ($52 billion) as traders sought opportunities offshore. The contrast with mature markets is stark. At Coinbase, institutional trading comprised over 80% of volume in H1 2024.

Industry participants expect the opening to accelerate momentum for a won-denominated stablecoin and domestic spot Bitcoin ETFs.

Industry Pushback

While welcoming the policy shift, industry participants argue the 5% ceiling is excessively conservative, citing that the US, Japan, Hong Kong, and the EU impose no comparable limits on corporate crypto holdings.

Critics warn the restriction could prevent the emergence of Digital Asset Treasury companies—firms like Japan’s Metaplanet that build corporate value through strategic Bitcoin accumulation.

“Applying excessive regulations only to crypto could leave Korea behind as global markets accelerate,” one industry official told the outlet.

Next Steps

The FSC plans to release final guidelines within January or February. Implementation timing will align with the Digital Asset Basic Act, scheduled for legislative introduction in Q1 2025. Corporate trading is expected to commence by year-end.

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