South Korea Reopens Corporate Crypto Floodgates After 9-Year Ban

TLDR

• Corporations can now invest 5% of equity in top 20 cryptocurrencies.
• Bitcoin expected to lead corporate portfolios, driving domestic demand.
• Trades limited to top five regulated exchanges for oversight and stability.
• Ethereum and major coins eligible; stablecoin rules still under review.
• Policy marks a major step in South Korea’s digital finance strategy.

South Korea has reopened corporate crypto floodgates after a nine-year ban, allowing listed companies to invest in digital assets. The Financial Services Commission will permit corporations and professional investors to allocate up to 5% of equity capital to top cryptocurrencies. The guidelines aim to bring significant liquidity to the local crypto market and support domestic digital asset growth.

The updated framework will limit investments to the top 20 cryptocurrencies by market capitalization. Corporations can trade only on the five largest regulated exchanges, strengthening oversight and market stability. The FSC plans to finalize the guidelines in January or February, enabling transactions within the year.

The move overturns restrictions dating back to 2017 when institutional participation was prohibited due to money laundering concerns. Large South Korean companies previously sought overseas markets to hold crypto. This policy shift marks a significant opening for domestic corporate crypto engagement.

Bitcoin Gains Focus as Corporate Portfolios Expand

Bitcoin will likely lead corporate allocations due to its market dominance and liquidity. The 5% cap allows companies with large equity to acquire substantial amounts of BTC. Consequently, domestic Bitcoin demand could increase sharply, improving market depth and local trading volume.

Top firms with significant capital could influence global crypto flows while holding BTC on their balance sheets. The restriction to top-market-cap assets ensures focused exposure while reducing risk to smaller altcoins. This framework positions South Korea as a regional leader in regulated corporate crypto adoption.

Corporate treasury strategies may now integrate Bitcoin alongside conventional financial instruments. Spot exchange-traded funds for Bitcoin could become more viable with increased institutional participation. Regulatory oversight will monitor transactions to prevent market manipulation or excessive volatility.

Ethereum and Other Major Digital Assets Included

Ethereum and other major coins will also be eligible for corporate investments. Limiting exposure to top digital assets supports market stability and prevents speculative surges. These guidelines provide a structured path for balanced portfolio diversification.

Stablecoin inclusion, such as USDT, remains under discussion, with authorities evaluating backing and redemption guarantees. Companies may eventually use stablecoins for liquidity management and transactional purposes. The final framework will outline specific conditions for stablecoin trading on regulated platforms.

This policy aligns with South Korea’s broader 2026 Economic Growth Strategy. The government also aims to execute 25% of treasury funds through a central bank digital currency by 2030. Licensing rules for stablecoin issuers are expected to reinforce financial security and user protections.

South Korea’s reopening of corporate crypto floodgates after a nine-year ban signals a clear commitment to digital asset integration. Large companies may now channel domestic capital into BTC, ETH, and other top cryptocurrencies. The policy shift could reshape the local crypto ecosystem and strengthen Seoul’s role in Asia’s digital finance landscape.

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