South Korea Lifts Nine Year Ban on Corporate Crypto Investments

South Korea’s financial watchdog is preparing to lift its nine-year ban on corporate crypto investments. This marks a significant shift in the country’s approach to digital assets, allowing corporations to enter the crypto market.

This comes as part of South Korea’s vision to foster the growth of its cryptocurrency industry. A new regulatory framework is being drafted, outlining how institutions can access digital assets.

South Korea’s FSC to Unveil New Rules of Corporate Crypto Investments

According to local reports, the Financial Services Commission (FSC) of South Korea is finalizing new guidelines to allow corporate companies and institutional investors to trade digital assets. With this move, the country announces an end to the long nine-year restrictions on corporate crypto investments.

Significantly, this move aligns with the country’s 2026 Economic Growth Strategy. As part of the broader vision, South Korea is promoting the establishment of the crypto market through corporate investments and ETF launches.

Interestingly, this development is seen as a major milestone as more than 3,500 companies in the country are expected to get access to crypto investments. As per the new guidelines, eligible companies will be allowed to invest 5% of their equity capital in crypto every year. However, they could invest only in the top 20 cryptocurrencies listed on South Korea’s crypto exchanges. The regulator is still reviewing the possible inclusion of dollar-backed stablecoins like Tether’s USDT and Circle’s USDC.

5% Limit Is Too Restrictive

Although the crypto industry largely welcomes South Korea’s policy shift, they argue that the 5% limit on corporate crypto investments is much conservative. They pointed to the progressive stance in other global powers like the US, Japan, the UK, and Hong Kong, all of which do not hold such restrictions.

While the country’s digital asset enthusiasts envision the growth of digital asset treasuries (DATs) in South Korea, they claim that the limitations on corporate crypto investments could hinder such possibilities. An industry expert noted, “Applying excessive regulations only to crypto could leave Korea behind as global markets accelerate.”

South Korea’s Broader Crypto Ambitions Take Shape

South Korea’s latest move is part of the country’s broader push to solidify its position as a leading crypto hub. The country has already taken the initiative to bolster stablecoin adoption in the country, with top banks planning to issue won-backed tokens.

Another major initiative is the country’s plan to launch crypto exchange-traded funds. As CoinGape reported recently, the government has announced proposals to approve and launch crypto ETFs this year.

Throughout last year, South Korea and its financial regulators have been taking initiatives to foster innovation while protecting investors. As new developments are on the way, the country’s crypto space is poised to see a major transformation.