South Korea has made three significant policy moves in the crypto sector within a week, raising concerns about a potential shift in regulatory stance. The Gwangju District Prosecutors’ Office liquidated 320.88 Bitcoin, worth $21.6 million, recovered from a phishing incident, opting to convert the assets to cash rather than hold them as state assets. Additionally, the Financial Services Commission (FSC) is finalizing guidelines allowing listed companies to invest in digital assets, but stablecoins like USDT and USDC are excluded due to legal inconsistencies under the Foreign Exchange Transactions Act. This exclusion may be temporary, pending legislative amendments. Lastly, a proposed cap on major shareholder ownership in crypto exchanges is under discussion, with a 34% ceiling agreed upon by the Democratic Party of Korea and the FSC. This cap, aimed at investor protection, has sparked debate over potential constitutional conflicts and its impact on exchange operations, such as the pending merger between Dunamu and Naver Financial.