• South Korea permits corporations and buyers to allocate as much as 5% fairness to high cryptocurrencies.
  • Break up trades and worth limits purpose to handle volatility and liquidity dangers successfully.
  • The coverage diverges from Hong Kong and Japan, that are tightening company crypto oversight.
  • Almost US$110B (AU$166.1B) in crypto belongings left South Korea in 2025 amid restricted institutional participation.

The Monetary Providers Fee of South Korea is advancing plans to permit restricted company funding in cryptocurrencies below a tightly managed framework. The proposed pointers would allow listed companies {and professional} buyers to allocate as much as 5% of their fairness capital to digital belongings annually.

Eligibility could be confined to the highest 20 cryptocurrencies by market capitalisation, reflecting regulators’ give attention to liquidity and market depth. Whether or not US dollar-pegged stablecoins will fall throughout the accredited funding universe stays below assessment.

Native media experiences recommend the FSC may finalise the rules throughout the first months of the yr, with company buying and selling doubtlessly commencing earlier than year-end. The transfer builds on regulatory modifications launched in mid-2025, when authorities started easing restrictions by permitting sure entities to promote crypto holdings.

South Korea’s institutional ban had been in place for practically a decade, leaving retail merchants because the dominant market members. That construction contributed to vital capital leaving the nation, with roughly US$110 billion (AU$166.1 billion) in crypto belongings flowing offshore in 2025.

Associated: Florida Advances Proposal for Standalone Bitcoin Reserve Ahead of 2026 Session

Liquidity Boosts Anticipated Regardless of Cap

Regulators have sought to mitigate dangers related to renewed institutional participation by pairing the allocation cap with execution controls. Deliberate measures embrace break up buying and selling necessities and worth limits supposed to comprise volatility as liquidity expands.

Market observers count on institutional demand to pay attention closely in Bitcoin, with Ethereum additionally more likely to profit below the brand new guidelines. Regardless of the inclusion of as much as 20 belongings, analysts don’t anticipate significant inflows into smaller cryptocurrencies.

The coverage shift locations South Korea at odds with neighbouring jurisdictions which have not too long ago tightened oversight of company crypto publicity. Not like South Korea, Hong Kong and Japan have launched stricter guidelines to restrict company holdings and scale back systemic threat. These contrasting approaches spotlight a regional divide in how governments steadiness innovation with monetary stability in digital belongings.

Associated: Japan Moves to Boost Crypto Safety With New Liability-Reserve Rules for Exchanges

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