South Korea Considers 5% Cap on Corporate Crypto Investments as Rules Ease

South Korea’s Financial Services Commission (FSC) is reportedly considering a new regulatory framework that would allow corporate cryptocurrency investments while capping them at 5% of a company’s equity capital. The move signals a significant step toward easing the country’s long-standing restrictions on institutional participation in the crypto market.

According to local media outlet Seoul Economic Daily, the FSC has drafted trading guidelines aimed at listed companies and professional investors, with a final version potentially released as early as January or February. If approved, actual corporate cryptocurrency trading could begin later this year, marking a major shift in South Korea’s digital asset policy.

Under the proposed rules, eligible firms would be permitted to allocate up to 5% of their equity capital per year to digital assets. Investments would be limited to the top 20 cryptocurrencies by market capitalization, a restriction designed to reduce risk and curb excessive volatility. Whether U.S. dollar–pegged stablecoins such as USDT would be included remains under discussion, reflecting broader regulatory uncertainty around stablecoins.

The proposed cap is part of a gradual effort to phase out what has effectively functioned as a ban on institutional crypto trading. South Korea began loosening these restrictions in mid-2025, allowing nonprofits and crypto exchanges to sell certain digital asset holdings. The FSC has previously indicated that listed companies and professional investors would eventually be allowed to trade cryptocurrencies under regulated conditions.

To further manage risk and market impact, authorities are expected to introduce additional safeguards, including split trading requirements and price limit rules. These measures aim to protect balance sheets and ensure orderly markets as corporate participation increases and liquidity expands.

Analysts suggest that even with access to the top 20 cryptocurrencies, most institutional capital would likely flow into bitcoin and, to a lesser extent, ether, with minimal spillover into smaller tokens.

Market participants are also closely monitoring the upcoming Digital Asset Basic Act, expected in the first quarter, which could further define regulations for stablecoins and pave the way for spot crypto ETFs in South Korea.