South Korea's Financial Services Commission (FSC) has officially finalised guidelines that will allow listed companies and professional investors to trade cryptocurrencies.
This landmark decision ends a nine-year ban on corporate investment in digital assets, marking a radical shift in Seoul's financial policy.
The initiative is not an isolated event, but fits into the broader framework of the government's 'Economic Growth Strategy 2026'. This ambitious plan also includes dedicated legislation for stablecoins and the approval of spot ETFs on cryptocurrencies, which was announced only last week.
The New Operational Framework for Businesses
According to reports from local media citing FSC documents, eligible companies will be able to invest up to 5 per cent of their equity annually. However, the reach will not be unlimited: investments are limited to the top 20 cryptocurrencies by market capitalisation listed on the five major Korean exchanges.
An estimated 3,500 entities will gain access to the market once the rules become enforceable. These include listed companies and registered professional investment firms.
It is still under discussion whether dollar-pegged stablecoins, such as Tether (USDT), will be included in the list of permitted assets. To ensure market stability, the authorities will require exchanges to implement staggered executions and size limits on orders.
A Market Dominated by Small Savings
The Korean regulatory environment has remained frozen since 2017, when authorities banned institutional participation due to money laundering concerns. This prolonged freeze has created a unique ecosystem: in South Korea, retail investors account for almost 100% of trading activity.
This lack of balance has pushed a lot of capital out. Capital flight is estimated to have reached 76 trillion won ($52 billion) due to traders seeking offshore opportunities.
The contrast with mature markets is clear: on Coinbase, for example, institutional trading made up more than 80 per cent of the volume in the first half of 2024. Industry experts anticipate that institutional openness will accelerate the launch of a won-denominated stablecoin and spot ETFs on Bitcoin nationwide.
Industry Criticism and Resistance
Despite the positive reception, many industry players consider the 5% limit to be overly conservative. Critics point out that jurisdictions such as the US, Japan, the EU and Hong Kong do not impose similar caps on corporate holdings.
There is a fear that such strict restrictions could curb the emergence of digital treasury companies along the lines of Metaplanet in Japan, which build corporate value through the strategic accumulation of Bitcoin.
Next steps and chronology
The FSC expects to release final guidelines between January and February. The technical implementation will be aligned with the Digital Asset Basic Act, which is scheduled for legislative introduction in the first quarter of 2025. If the timeline is adhered to, business negotiations should officially start by the end of 2026.
