South Korea Ends Nine-Year Corporate Crypto Investment Ban

TLDR

• South Korea’s Financial Services Commission is ending a nine-year ban on corporate crypto investment with new guidelines expected in January or February 2026
• Listed companies and professional investors will be allowed to invest up to 5% of their equity capital in the top 20 cryptocurrencies by market cap
• Investments will be restricted to Korea’s five largest regulated exchanges, with inclusion of stablecoins like USDT still under discussion
• The move could bring tens of trillions of won into crypto markets, with companies like Naver potentially able to buy 10,000 BTC
• South Korea is also working on a Digital Asset Basic Act and aims to process 25% of national treasury funds through a CBDC by 2030

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South Korea’s Financial Services Commission is preparing to lift a ban on corporate cryptocurrency investment that has been in place since 2017. The new guidelines are expected to be released in January or February 2026.

Listed companies and professional investors will be permitted to allocate up to 5% of their equity capital to digital assets. The investments will be limited to the top 20 cryptocurrencies by market capitalization.

A senior FSC official told Seoul Economic Daily that authorities will “release the final guidelines in January [or] February and allow virtual currency transactions for investment and financial purposes by legal entities.” The FSC shared the latest guidelines with its crypto working group on January 6.

The original ban was implemented in 2017 when financial authorities blocked institutional participation over money laundering concerns. South Korean companies have been forced to make crypto investments overseas to avoid local restrictions.

Under the new rules, corporations can only trade on Korea’s five largest regulated exchanges. The question of whether dollar-pegged stablecoins like Tether’s USDT will be included in eligible assets remains under discussion.

Market Impact and Company Examples

The policy change could inject tens of trillions of won into cryptocurrency markets. South Korean internet giant Naver, which holds 27 trillion won ($18.4 billion) in equity capital, could theoretically purchase 10,000 Bitcoin under the 5% allocation cap.

Min Jung, associate researcher at Presto Research, told The Block that “the immediate impact will be improved liquidity.” Jung expects investment flows to concentrate in Bitcoin and possibly Ethereum rather than spreading across altcoins.

The FSC proposed the 5% limit to manage risks from large-scale corporate crypto exposure. The guidelines will include split trading rules and price limits on trade execution to reduce market risks from increased liquidity.

Broader Regulatory Framework

The move is part of South Korea’s phased approach to easing corporate crypto investment rules. The FSC first announced these plans in February 2025. In mid-2025, the country began allowing non-profit organizations and crypto exchanges to sell their holdings.

The upcoming Digital Asset Basic Act will formalize rules for won-pegged stablecoins and the country’s first spot crypto ETFs. The final version of this legislation is expected in the first quarter of 2026.

South Korea also announced plans to process 25% of all national treasury funds through a central bank digital currency by 2030. This initiative is part of the 2026 Economic Growth Strategy.

The government will introduce a licensing system for stablecoin issuers like Tether. Issuers will need 100% reserve asset backing and must legally guarantee users’ redemption rights.

Jung noted that “stablecoin regulation, particularly any framework around a won-denominated stablecoin” could have major implications for the local crypto ecosystem. Support for crypto ETFs has been building across the country but regulatory approval remains pending.

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