South Korea crypto bulls face make-or-break test at 5% cap

South Korea plans to cap corporate and professional crypto holdings at 5% of equity, steering most institutional flows into top‑20 coins while it finalizes ETF and stablecoin rules.

Summary

• FSC draft guidelines would let corporates buy only the top 20 coins by market cap, with debate ongoing over whether to include dollar stablecoins like USDT.​
• Final rules, expected by February, will add price limits and split trading to curb volatility as institutions enter, likely concentrating liquidity in Bitcoin and possibly Ethereum.​
• The coming Digital Asset Basic Act will set won‑stablecoin rules and open the door to South Korea’s first spot crypto ETFs, seen as pivotal for the local market structure.​

South Korea’s Financial Services Commission is planning to limit corporate and professional investor cryptocurrency holdings to 5% of equity capital annually, according to reports.

Under the draft guidelines, corporations would be permitted to invest in the top 20 cryptocurrencies by market capitalization. The inclusion of U.S. dollar-pegged stablecoins such as USDT remains under discussion, according to the reports.

South Korea expected to offer 5% corporate crypto cap

Finalized rules are expected between January and February, with corporate trading anticipated later this year, the reports stated. The proposed framework will also establish price limits and split trading rules designed to mitigate volatility as corporate participation increases.

The cap is likely to improve liquidity but will concentrate flows in Bitcoin (BTC) and potentially Ethereum, with limited impact on smaller altcoins, according to analysts. The 5% limit may not pose a significant constraint, as most companies are unlikely to exceed it in the initial stages, observers noted.

Market participants are monitoring the country’s upcoming Digital Asset Basic Act, expected in the first quarter. The legislation will formalize regulations for won-pegged stablecoins and introduce the nation’s first spot crypto exchange-traded funds, according to reports.

Stablecoin rules are viewed as particularly influential for South Korea’s broader crypto ecosystem, market observers stated.

The FSC’s measures reflect a cautious approach to expanding institutional crypto access while safeguarding market stability amid growing corporate interest, according to analysts.