South Korea Reportedly Ends Nine-Year Corporate Crypto Ban
South Korea’s Financial Services Commission (FSC) has reportedly finalized pointers allowing listed firms {and professional} traders to commerce cryptocurrencies.
The transfer ends a nine-year prohibition on company crypto funding and enhances the federal government’s broader “2026 Economic Growth Strategy,” which incorporates stablecoin laws and spot crypto ETF approvals introduced final week.
Corporate Investment Framework
Under the FSC’s information pointers cited by a local media report, eligible firms can make investments as much as 5% of their fairness capital yearly. Investment targets are restricted to the top-20 cryptocurrencies by market capitalization on Korea’s 5 main exchanges.
Approximately 3,500 entities will acquire market entry as soon as the principles take impact. These embody publicly listed companies and registered skilled funding firms.
Whether dollar-pegged stablecoins resembling Tether’s USDT qualify stays beneath dialogue. Regulators may even require exchanges to implement staggered execution and order measurement limits.
Market Context
The pointers mark the primary regulatory inexperienced mild for company crypto funding since 2017. Authorities banned institutional participation amid considerations about cash laundering.
The extended prohibition has formed Korea’s crypto market in distinct methods. Retail traders account for nearly 100% of buying and selling exercise. Capital flight reached 76 trillion received ($52 billion) as merchants sought alternatives offshore. The distinction with mature markets is stark. At Coinbase, institutional buying and selling comprised over 80% of quantity in H1 2024.
Industry contributors count on the opening to speed up momentum for a won-denominated stablecoin and home spot Bitcoin ETFs.
Industry Pushback
While welcoming the coverage shift, business contributors argue the 5% ceiling is excessively conservative, citing that the US, Japan, Hong Kong, and the EU impose no comparable limits on company crypto holdings.
Critics warn the restriction might forestall the emergence of Digital Asset Treasury firms—companies like Japan’s Metaplanet that construct company worth by way of strategic Bitcoin accumulation.
“Applying extreme rules solely to crypto might go away Korea behind as international markets speed up,” one business official advised the outlet.
Next Steps
The FSC plans to launch last pointers inside January or February. Implementation timing will align with the Digital Asset Basic Act, scheduled for legislative introduction in Q1 2025. Corporate buying and selling is anticipated to begin by year-end.
The publish South Korea Reportedly Ends Nine-Year Corporate Crypto Ban appeared first on BeInCrypto.
