South Korea enables corporate investment in crypto assets, ending 9 years of restrictions

South Korea lifts ban on corporate investment in crypto assets, allowing companies to allocate 5% of their capital to the market's leading digital assets.

After nearly a decade of restrictions, the South Korean government will once again allow publicly traded companies and professional investors to allocate a portion of their capital to cryptocurrencies. The regulations authorize investments of up to 5% of share capital in the twenty digital currencies with the highest market capitalization, traded on the country's five largest asset exchanges.

With this decision, the authorities are ending a policy in place since 2017, when institutional participation in the crypto ecosystem was blocked for financial control reasons. Now, the Financial Services Commission (FSC) has presented new rules that open the door to the corporate sector, integrating them into the Economic Growth Strategy 2026.

According to the organization, this regulatory flexibility seeks to promote technological innovation, attract private investment and consolidate the country's position as one of the benchmarks in the global digital ecosystem.

South Korea opens its doors to the crypto market

The decision by the Financial Services Commission (FSC) marks a new stage for the cryptocurrency market in South Korea, which is now open to corporate capital. With this measure, approximately 3.500 companies, including publicly traded firms and professional investment corporations, will be able to participate directly in the trading of digital assets.

Until now, activity in this market had been dominated almost entirely by retail investors, who accounted for nearly 100% of the trading volume. However, large sums of money, equivalent to some $52.000 billion, were leaving the country in search of opportunities in other markets. Now, the new regulations aim to reverse this trend and reactivate the flow of capital within the country, following reforms that began to be implemented in mid-2025.

In this context, the new rules stipulate that companies will only be able to be assigned Up to 5% of their annual capital can be allocated to cryptocurrency investments, prioritizing the 20 largest digital assets by market capitalization. Locally regulated platforms will be responsible for evaluating and listing eligible projects. Currently, dollar-backed stablecoins, such as USDT, remain under review, although discussions regarding their inclusion are ongoing.

On the other hand, the regulator is urging asset exchange platforms to implement strict controls to prevent sudden market movements, limiting order sizes and managing trades gradually. Industry experts anticipate that initial investments will primarily focus on Bitcoin and Ethereum, with a potential impact on other major tokens in the market.

With this update, South Korea takes a firm step toward more complete integration into the global digital asset ecosystem. The 2017 ban, motivated by fears of illicit transactions, is now a thing of the past as the country moves toward a more mature and supervised approach, in line with the evolution of major international markets.

The FSC is paving the way for cryptocurrencies in 2026

Reopening the market to businesses is not an isolated measure, but the central component of a broader roadmap that will culminate in the full implementation of the Basic Law on Digital Assets in the first quarter of this year. The vision of the South Korean authorities is to transform the local crypto ecosystem, moving from a purely speculative environment to one of financial utility and strategic investment.

By allowing institutional investors to participate, South Korea is aligning itself with other economic powers that have already normalized these financial instruments. The presence of professional investors typically brings deep liquidity and stability to order books, factors that could smooth out the aggressive price cycles that have historically plagued the local market. For the country's technology and financial industries, this represents a critical opportunity to retain specialized talent and develop competitive derivatives products.

The timetable established by the FSC includes ongoing evaluation throughout 2026. While initial access is limited to listed companies and professionals, the regulator has left the door open to expanding its scope to other financial institutions, depending on market behavior and the effectiveness of anti-money laundering controls. In parallel, the discussion about spot cryptocurrency exchange-traded funds (ETFs) and possible issuance of a stablecoin backed by the Korean won They are gaining traction, emerging as the next logical steps in the modernization of the national monetary system.

Moving towards a new stage of financial integration

With the new regulations, South Korea is moving towards a regulatory maturity that legitimizes digital assets as a valid corporate investment class. 

By removing the barriers imposed almost a decade ago, the country can not only regain competitiveness against other Asian hubs, but also seeks to offer its business sector modern tools for treasury management. 

The successful implementation of these regulations in the coming months will be crucial in consolidating Seoul as a global leader in integrating traditional finance with the new digital economy.