South Korea's Financial Services Commission (FSC) plans to lift a nine-year ban on corporate cryptocurrency investments, allowing listed companies and professional investors to engage in crypto trading. This move, part of the FSC's "Virtual Asset Market Development Plan," aims to integrate institutional investors into the market, which has been dominated by retail participants since 2017. The new regulations will permit qualified entities to invest up to 5% of their net assets annually in the top 20 cryptocurrencies by market capitalization, including Bitcoin and Ethereum.
The FSC's draft guidelines, shared on January 6, propose measures to ensure market stability, such as splitting large trades into smaller orders to prevent price manipulation. While the guidelines are still under discussion, the final version is expected by early 2026, with corporate crypto transactions potentially commencing by the end of that year. This regulatory shift is anticipated to enhance liquidity and attract institutional capital back to South Korea, supporting the local crypto ecosystem and aligning with the government's 2026 Economic Growth Strategy.
South Korea to Lift Corporate Crypto Investment Ban After Nine Years
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