South Korea Lifts Nine-Year Ban on Corporate Crypto Investing

• South Korea lifted its 2017 ban, allowing listed firms and professional investors limited crypto access under new FSC rules.
• Eligible entities can invest up to 5% of equity in top-20 cryptocurrencies on the country’s five regulated exchanges.
• The move aims to boost liquidity and curb capital outflows as South Korea advances broader digital asset laws.

South Korea has moved to reopen crypto markets to corporations after nearly a decade of restrictions. On Sunday, local media reported that the Financial Services Commission finalized new crypto trading guidelines. The decision, disclosed in Seoul, allows listed companies and professional investors to invest under strict limits as part of the government’s 2026 Economic Growth Strategy.

According to Seoul Economic Daily, the Financial Services Commission shared the updated guidelines with its crypto working group on Jan. 6. The rules end a ban introduced in 2017, when regulators restricted institutional crypto activity over money laundering concerns. Under the new framework, eligible entities may invest up to 5% of equity capital annually.

Notably, investment options will be limited to the top 20 cryptocurrencies by market capitalization. Trading must occur on South Korea’s five largest regulated exchanges. Approximately 3,500 entities, including listed firms and registered professional investors, qualify once implementation begins.

However, regulators have not finalized whether U.S. dollar-pegged stablecoins like Tether’s USDT will qualify. Additionally, exchanges must apply split trading methods and order size limits. These controls aim to reduce volatility as corporate liquidity enters domestic markets.

The guidelines mark the first institutional green light since 2017. Since then, South Korea’s crypto market has relied almost entirely on retail participation. According to reports, capital outflows reached 76 trillion won, or about $52 billion, as traders moved offshore.

By contrast, institutional activity dominates mature markets. Coinbase reported that institutions accounted for over 80% of trading volume in the first half of 2024. Industry participants expect the new access to improve liquidity, although flows may concentrate in Bitcoin and Ethereum.

Despite support, some industry officials criticized the 5% cap as overly cautious. They cited the absence of similar limits in the United States, Japan, Hong Kong, and the European Union. Critics also warned the rule could restrict digital asset treasury strategies.

The Financial Services Commission plans to release final guidelines by January or February. Corporate trading is expected to begin later this year. Timing will align with the Digital Asset Basic Act, scheduled for introduction in the first quarter.

The legislation aims to formalize stablecoin licensing and support spot crypto ETFs. Separately, the government plans to process 25% of treasury transactions through a CBDC by 2030. These measures form part of South Korea’s broader digital finance strategy.