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South korea lift ban on corporate crypto investments
South korea lift ban on corporate crypto investments

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South Korea Lifts Ban on Companies Offering Cryptocurrency-Related Services

Corporate investment into digital assets from South Korean companies is set to be allowed after nine years of freeze, according to new reforms from regulators. Investment of up to 5% equity in Bitcoin and other cryptocurrencies by large insurance companies is being planned.

Rules on Corporations Investing in Crypto Will Change for Good in South Korea

South Korea may change its conventional position on digital assets. The country’s Financial Services Commission (FSC) is putting the final touches on new guidelines that will allow businesses and professional investors to invest in cryptocurrencies for the first time in almost a decade.

As per local media reports, listed companies and qualified institutional buyers will be allowed to allocate a maximum 5% of equity capital to crypto assets. According to a senior official familiar with the process, the objective is for final guidelines to be published by January or February at the latest, reopening corporate access to the digital asset market.

If authorities move forward with the plans, the decision would reverse a ban imposed in 2017 over concerns related to money laundering risks and financial stability.


The Way South Korea Will Regulate Corporate Crypto Holdings

Regulators are taking cautious steps even though the policy marks a drastic shift. Investments made by corporations in crypto will be limited to only the top 20 cryptocurrencies by market capitalization and will only be traded through South Korea’s five largest registered crypto exchanges.

The ongoing regulatory treatment of U.S. dollar–pegged stablecoins, including Tether (USDT), suggests that authorities are still weighing the risks associated with certain foreign-backed digital currencies.

According to reports, the draft framework was shared with a crypto policy working group on Jan. 6. Previously, in February 2025, the FSC pledged to gradually lift restrictions on corporate crypto investment.

Also Read : Ubisoft Shuts Down Rainbow Six Siege After a Hack Credits Players With $13 Million Credits


Reasons This Policy May Change the Game in Korean Markets

The impact could be substantial, according to market watchers. Analysts predict that the policy shift could channel tens of trillions of won into the crypto ecosystem.

For example, Naver, the technology giant with equity capital of around 27 trillion won ($18.4 billion), could theoretically purchase roughly 10,000 Bitcoin under the proposed limits. Such moves could significantly boost liquidity and enhance the institutional credibility of South Korea’s crypto market.

The reform may also accelerate long-delayed plans for a spot Bitcoin ETF and the launch of a national stablecoin, both of which have drawn strong local interest but stalled amid prolonged regulatory consultations.


Advantage for Blockchain Startups and Digital Asset Treasuries

The policy shift could reshape South Korea’s digital economy beyond price movements alone. Allowing domestic companies to hold cryptocurrency assets may:

  • Strengthen local blockchain startups
  • Foster the development of digital asset treasuries (DATs)
  • Reduce the need for Korean firms to invest overseas to bypass domestic restrictions

For years, many major corporations have sought crypto exposure abroad. These capital flows could now return home.


South Korea’s Strategy Centered on CBDCs and Stablecoins

Efforts to reform corporate crypto rules are part of a broader national strategy. Under the government’s 2026 Economic Growth Strategy, South Korea plans to process 25% of national treasury transactions using a central bank digital currency (CBDC) by 2030.

The framework also introduces a clear licensing regime requiring stablecoin issuers to maintain 100% reserve backing and legally protected redemption rights. These measures are expected to reinforce trust and long-term financial stability.


A Pivotal Moment for South Korea’s Cryptocurrency Future

By reopening the door to corporate crypto investment, South Korea is signaling a more mature and structured approach to digital assets. If implemented as planned, the legislation could position the country as a regional leader in institutional crypto adoption, balancing innovation with robust regulation.

author avatar
Satpal S
Satpal is an Editor and Author at 4C Media Co, specializing in all stories and news related to crypto and finance.
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