The post South Korea Reportedly Ends Nine-Year Corporate Crypto Ban appeared on BitcoinEthereumNews.com.

South Korea’s Financial Services Commission (FSC) has reportedly finalized guidelines permitting listed companies and professional investors to trade cryptocurrencies. The move ends a nine-year prohibition on corporate crypto investment and complements the government’s broader “2026 Economic Growth Strategy,” which includes stablecoin legislation and spot crypto ETF approvals announced last week. Sponsored Sponsored Corporate Investment Framework Under the FSC’s news guidelines cited by a local media report, eligible corporations can invest up to 5% of their equity capital annually. Investment targets are limited to the top-20 cryptocurrencies by market capitalization on Korea’s five major exchanges. Approximately 3,500 entities will gain market access once the rules take effect. These include publicly listed firms and registered professional investment corporations. Whether dollar-pegged stablecoins such as Tether’s USDT qualify remains under discussion. Regulators will also require exchanges to implement staggered execution and order size limits. Market Context The guidelines mark the first regulatory green light for corporate crypto investment since 2017. Authorities banned institutional participation amid concerns about money laundering. Sponsored Sponsored The prolonged prohibition has shaped Korea’s crypto market in distinct ways. Retail investors account for nearly 100% of trading activity. Capital flight reached 76 trillion won ($52 billion) as traders sought opportunities offshore. The contrast with mature markets is stark. At Coinbase, institutional trading comprised over 80% of volume in H1 2024. Industry participants expect the opening to accelerate momentum for a won-denominated stablecoin and domestic spot Bitcoin ETFs. Industry Pushback While welcoming the policy shift, industry participants argue the 5% ceiling is excessively conservative, citing that the US, Japan, Hong Kong, and the EU impose no comparable limits on corporate crypto holdings. Critics warn the restriction could prevent the emergence of Digital Asset Treasury companies—firms like Japan’s Metaplanet that build corporate value through strategic Bitcoin accumulation. “Applying excessive regulations only to crypto…

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Filed under: News - @ January 12, 2026 2:00 am