South Korean regulators, in a shocking turn of events, have decided to lift a nine-year ban on corporate crypto investments. Because, you know, nine years is a long time to be stuck in the dark ages of finance 🕰️.
- The Financial Services Commission (FSC) will allow listed firms and professional investors to invest up to 5% of their equity in the top 20 cryptocurrencies. A measly 5%, but hey, it’s a start, right? 🤔
- Corporate trading is expected to begin by the end of 2026, following final approval. That’s a whole year and a half from now, but who’s counting? 🕰️
The FSC has crafted new guidelines for listed corporations and professional investors, which are expected to be finalized by February. Because, of course, they want to make sure everyone has plenty of time to get their crypto ducks in a row 📝.
According to the proposal, eligible firms can allocate up to 5% of their equity capital annually. But, of course, there are caveats. They can only invest in the top 20 cryptocurrencies by market capitalization listed on Korea’s five major exchanges. No investing in that weird cousin’s crypto startup, sorry 😐.
And, because no one likes a stablecoin snob, discussions are ongoing on whether stablecoins like USDT would be included as permissible investment assets under the new rules. Stay tuned for more updates on that front 📺.
The industry is welcoming this change with open arms, but some proponents are concerned that the investment cap may be excessive and could leave South Korea at a disadvantage compared to other countries. Because, you know, the US, Japan, and the EU don’t have any restrictions on corporate crypto holdings. Nope, not at all 😏.
“Investment limits, which do not exist overseas, could weaken the inflow of funds and prevent the emergence of specialized virtual currency investment companies,” said an industry insider. Yeah, because nothing says “specialized virtual currency investment company” like a bunch of suits playing video games all day 🕹️.
South Korea warms up to crypto (finally!) ❄️
South Korea banned corporate crypto investments and Initial Coin Offerings in 2017. Whoops, bad move, right? 🙈 At the time, regulators were concerned that cryptocurrencies posed significant risks to the country’s financial stability, and framed crypto investments as “non-productive speculative” activity. Classic 🤦♂️.
However, over the years, regulators have gradually softened their stance, and under a crypto-friendly administration led by President Lee Jae-myung, who took office in 2025, authorities have moved to re-integrate digital assets into the financial system. Better late than never, right? 🕰️
Last year, South Korea started allowing non-profit organizations and crypto exchanges to liquidate crypto holdings for financial management purposes. And now, they’re letting corporations get in on the action. It’s like a crypto party 🎉!
In the meantime, crypto-related rule-making has faced delays. The Digital Asset Basic Law, which would establish comprehensive standards for stablecoin issuance, custody, and investor protection, has been postponed to 2026. Yeah, because nothing says “comprehensive standards” like a good ol’ fashioned delay 🚫.
Regulators are currently debating whether the oversight of stablecoin reserves should be handed to the FSC or the Bank of Korea, and which institutions should be permitted to issue won-pegged stablecoins under the upcoming regulatory framework. Because, you know, bureaucrats love a good game of hot potato 🔥.
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2026-01-12 11:10