South Korea is set to relax its ban on investing in crypto by corporations and will therefore bring about a significant change in policy that will help open up the market for digital assets to new institutions. The Financial Services Commission has been seen to have updated the guidelines to allow corporations to invest in crypto assets again after the ban that has been effective since 2017.
As reported by the Seoul Economic Daily, soon, the companies that are listed and professional investors will be allowed to invest a certain percentage of equity in these digital assets, and that percentage is going to be 5%. As told to the publication by a high official from the FSC, “the final guidelines will be released in January or February, and then it will be possible for a legal entity to make a virtual currency transaction for investment and financial purposes.”
The lifted ban nullifies a nine-year blockade that was established in the 2017 crypto boom. At that time, the government restricted institutional involvement due to heightened worries about the potential for money laundering and speculation. Rather, it seems that the government is more interested in regulating the involvement of companies in the industry.
Investment access will come with strict limits
The FSC intends to ensure that the use of corporates in cryptocurrency investments is well managed. Based on the proposed framework, corporates can invest in no more than the top 20 cryptocurrencies in terms of market capitalization. In addition, companies must trade through the top five exchanges in South Korea, reducing the risk associated with the other party in a trade and ensuring higher supervision.
Although regulators are yet to make up their mind on whether to include dollar-pegged stablecoins like Tether’s USDT, stablecoins are still quite sensitive in policy circles because of their increasing importance in managing capital flows and cross-border payments.
The FSC allegedly distributed the latest draft rules to their working group for cryptos on Jan. 6, in response to earlier hints in February 2025 that they would loosen up rules in phases.
Bullish implications for Korean crypto markets
If implemented, it could inject a massive amount of capital into the market. This is because the largest listed firms in South Korea have very deep balance sheets, and any allocation will result in massive purchases.
For example, the report cited internet giant Naver, which holds about 27 trillion won ($18.4 billion) in equity capital. Under a 5% cap, such a company could theoretically deploy large sums into digital assets potentially buying thousands of Bitcoin-equivalent exposure depending on strategy and timing.
Beyond direct inflows, the new guidance could accelerate broader market developments. Industry observers expect the easing of corporate limits to support faster progress toward:
- a national stablecoin initiative, and
- The eventual approval of spot Bitcoin ETFs, which already have growing political and industry backing, but still face regulatory hurdles.
Corporate participation could also strengthen local crypto companies, blockchain startups, and digital asset treasury (DAT) strategies. In recent years, several Korean firms have invested overseas to avoid domestic limits, which reduced Korea’s ability to keep crypto innovation onshore.
Stablecoins and CBDCs remain central to Korea’s strategy
The reported policy update also fits into South Korea’s wider digital finance agenda. Separately, Seoul Economic Daily reported that the South Korean government has outlined an ambitious plan under its 2026 Economic Growth Strategy, including a goal to execute 25% of national treasury fund activity via a CBDC by 2030.
In addition, policymakers are considering a licensing system for stablecoin issuers. The plan would require:
- 100% reserve backing, and
- legally protected redemption rights for users.
If South Korea finalizes both corporate investment permissions and stablecoin licensing, the country could emerge as one of Asia’s most structured and institution-friendly crypto markets.
Highlighted Crypto News:
Stocks and US Dollar Dipped Following Trump-Powell Feud, Where’s Crypto Market Headed?
