South Korea Plans to Lift Corporate Crypto Ban, Sets 5% Investment Cap

Jimmy Aki
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On January 11, local media reported that South Korean authorities are working to ease the country’s long-standing ban on corporate cryptocurrency investment while introducing limits to control exposure.

According to a report from the Seoul Economic Daily, the Financial Services Commission (FSC) has drafted new trading rules. These guidelines would permit listed companies and professional investors in South Korea to allocate up to 5% of their equity capital to digital assets annually.

South Korea Limits Corporate Crypto Exposure to Top 20 Assets

The proposal limits investments to the top 20 cryptocurrencies by market capitalization, with Bitcoin and Ethereum expected to capture most inflows. The eligibility of dollar-pegged stablecoins, such as USDT, is still being decided.

A senior FSC official disclosed that corporate trading could begin later this year, if the rules are finalized early. That would formally end a ban in place since 2017, when institutional crypto participation was halted over money-laundering and market-stability concerns.

Under the new framework, investments would also be restricted to Korea’s largest regulated exchanges, alongside safeguards such as split-order execution and price limits to reduce volatility risks.

Although most companies are expected to stay below the full 5% threshold in practice, the cap is more of a risk-control measure than a binding constraint.

The move fits into a larger policy shift. Since mid-2025, South Korea has gradually eased restrictions, allowing nonprofits and exchanges to sell crypto holdings.

The upcoming Digital Asset Basic Act, expected in the first quarter of 2026, is set to formalize rules around Korean won-denominated stablecoins and potentially pave the way for the country’s first spot crypto ETFs.

Global Crypto Regulation Splinters as Adoption Jumps

South Korea is not the only country reassessing its stance on crypto. Across the world, governments are increasing oversight while selectively reopening access.

The UK plans to extend financial regulations to crypto as digital assets will be folded into its existing financial framework, thereby applying the same transparency, reporting, and consumer-protection rules used for traditional finance.

His Majesty’s (HM) Treasury is drafting legislation that would bring crypto exchanges, wallets, and related services under the regulatory oversight of the Financial Conduct Authority (FCA) supervision by October 2027.

While this move in the UK contrasts with the European Union (EU) Markets in Crypto-Assets (MiCA) regime, it mirrors the U.S. approach of adapting legacy rules.

Meanwhile, Colombia is strengthening crypto enforcement. The country’s tax authority, the National Directorate of Taxes and Customs (DIAN), will now require crypto service providers to report detailed user and transaction data, especially for large transfers, starting in 2026.

These examples from the U.K. and Colombia show crypto regulation is no longer binary. With governments experimenting to balance growth and risk in an attempt to find what works locally.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.