South Korea to Reopen Crypto Markets to Listed Firms With 5% Equity Cap

• South Korea plans to reopen crypto markets to listed firms with a 5 percent equity cap to manage early corporate risk.
• Corporate crypto trading may reduce capital outflows as regulators expect better market structure and longer holding periods.
• The government will review spot Bitcoin ETFs to align digital assets with its 2026 economic growth strategy.

South Korean regulators plan to reopen the nation’s digital asset market to listed companies and professional investors after nearly nine years. Authorities will allow firms to invest up to 5% of equity in major cryptocurrencies.

Officials expect the change to unlock participation from more than 3,500 listed companies. The policy signals a measured shift toward institutional access within a tightly supervised framework.

The reform forms part of a broader policy package led by the Financial Services Commission. Regulators prepared draft rules under “Virtual Currency Trading Guidelines for Listed Companies.” These guidelines emerged from coordination with a public-private task force. Authorities plan to publish final rules between January and February this year. After release, companies may trade digital assets for investment and treasury management.

Officials expect real trading to begin this year once rules take effect. The Digital Asset Framework Act will launch in the first quarter of this year. Regulators capped annual investment at 5% of equity to manage exposure. The cap applies across all eligible digital assets. Supervisors view the limit as a safeguard during early corporate participation.

Companies may invest only in the top 20 cryptocurrencies by market capitalization. Authorities will update eligibility twice yearly using data from five major domestic exchanges. Regulators continue to debate stablecoin inclusion, including Tether’s USDT. The decision remains under review as officials assess market stability risks.

Moreover, regulators anticipate volatility as corporate funds enter markets. Therefore, authorities plan controls on split trades and abnormal price orders. These measures aim to reduce sharp swings and preserve orderly trading. Supervisors intend to monitor execution closely as participation expands. The approach prioritizes risk containment while enabling access.

Market participants broadly welcome the reopening but question the strict investment cap. Comparable markets such as the United States and Japan impose no explicit limits. Meanwhile, the European Union and Singapore allow broader corporate leverage. Some analysts warn the cap could curb foreign interest. They also suggest it may slow growth of crypto-focused investment firms.

Currently, individual investors dominate domestic trading. South Korea surpassed 10 million local crypto investors last year. Despite that scale, roughly 76 trillion won flowed overseas. Analysts attribute the outflow to short-term retail trading behavior. Regulators expect corporate participation to improve market structure and retention.

Separately, South Korea confirmed plans to introduce spot Bitcoin exchange-traded funds. The proposal aligns with the nation’s 2026 Economic Growth Strategy. Financial officials will begin a detailed review within the year. The review aims to integrate digital assets into regulated financial markets while maintaining oversight.