South Korea’s Financial Services Commission (FSC) is preparing to lift a nine-year ban on corporate crypto investments, according to local reports. Under updated guidelines, listed companies and professional investors will be allowed to allocate up to 5% of their equity capital to the top 20 cryptocurrencies by market capitalization. Investments must occur on the country’s five largest regulated exchanges, and discussions are ongoing regarding the inclusion of dollar-pegged stablecoins such as USDT. Final guidelines are expected to be released between January and February 2026.
The ban, enacted in 2017, was originally intended to curb institutional exposure to money laundering risks and speculative trading. The reversal aligns with broader efforts by South Korea to integrate digital assets into the regulated financial system and support corporate treasury diversification. Companies will be able to participate in crypto markets for investment and financial purposes while remaining under FSC oversight.
Market Implications and Institutional Adoption
The policy change could channel significant capital into South Korea’s crypto ecosystem. Analysts note that large firms, such as Naver with 27 trillion won in equity, could deploy billions into cryptocurrencies, potentially influencing local market liquidity and valuations. The move may also accelerate the introduction of spot Bitcoin exchange-traded funds (ETFs) and national stablecoin initiatives, which have been under discussion for regulatory approval.
Corporate participation is expected to spur growth among local digital asset companies, blockchain startups, and digital asset treasuries (DATs), while reducing the need for domestic capital to seek investment opportunities overseas. The FSC’s phased approach reflects institutional prudence, balancing market development with regulatory compliance and risk mitigation.
Broader Digital Currency Strategy
South Korea’s new guidelines complement the government’s wider economic strategy, which aims to route 25% of national treasury funds through a central bank digital currency (CBDC) by 2030.
The plan also includes a licensing framework for stablecoin issuers, requiring full reserve backing and legally enforceable redemption rights for users. Collectively, these measures indicate a strategic effort to position South Korea as a regulated, innovation-driven hub for digital assets, integrating corporate participation with national monetary policy.