In a groundbreaking shift, South Korea’s Financial Services Commission (FSC) is reportedly preparing to update its long-standing guidelines to allow companies to invest in digital assets.
After nearly a decade of restrictions, this potential policy change is being closely watched by investors and the crypto community.
For the first time since 2017, when the country imposed a blanket ban on institutional crypto participation due to concerns over illegal activities like money laundering, the FSC plans to let listed companies and professional investors make crypto investments.
The news was first reported by Seoul Economic Daily on Sunday.
What the New Guidelines Mean for Corporations
The proposed changes will permit legal entities, including large corporations, to invest up to 5% of their equity capital in cryptocurrency.
The authorities are expected to finalize these updated guidelines by January or February, opening the door for businesses to trade virtual currencies for both investment and financial purposes.
The policy shift marks a major reversal of the nine-year ban, which had effectively shut out corporate players from the digital asset space.
The government had originally enacted the ban to prevent financial crimes and protect investors.
However, the new framework will come with restrictions.
Investments will be limited to the top 20 cryptocurrencies by market capitalization, and transactions can only occur on the five largest regulated exchanges within South Korea.
Stablecoins Still Under Debate
While the new regulations are a major step forward for the country’s crypto market, there’s still some ambiguity regarding the inclusion of stablecoins, particularly dollar-pegged ones like Tether’s USDT.
According to the report, the FSC has yet to make a final decision on whether stablecoins will be part of the list of allowed digital assets.
The inclusion of stablecoins is still a subject of discussion, suggesting that the FSC may roll out the regulations in phases.
This would allow for gradual adjustments as more information becomes available and as the digital asset market matures.
A Potential Surge in Crypto Investment
The impact of these new guidelines could be profound, potentially bringing tens of trillions of South Korean won into the cryptocurrency market.
With internet giant Naver holding 27 trillion won ($18.4 billion) in equity capital, the company could theoretically invest in large amounts of crypto, such as 10,000 Bitcoin (BTC), based on the 5% equity capital limit.
This could represent a major shift in the market dynamics, with the potential for corporate investments to significantly drive up demand for digital assets.
Moreover, the FSC’s decision could accelerate the launch of products like Bitcoin exchange-traded funds (ETFs) and even a national stablecoin, further integrating digital assets into the broader financial system.
Boosting the Local Crypto Ecosystem
As a result of these regulatory updates, there could be an expansion in South Korea’s domestic crypto industry.
Local blockchain startups, crypto companies, and Digital Asset Treasuries (DATs) might see increased investment and growth opportunities.
The move could also reduce the need for South Korean companies to invest in international crypto markets, as they’ve had to do in recent years due to local restrictions.
The potential for local crypto firms to thrive is significant, as institutional capital previously directed overseas could now be invested within South Korea’s borders, offering a boost to the domestic economy and the country’s digital asset landscape.
Central Bank Digital Currency and Stablecoins to Play Key Role
In addition to the corporate crypto guidelines, South Korea’s government has unveiled an ambitious digital currency strategy.
According to reports, the government aims to execute 25% of all national treasury funds through a Central Bank Digital Currency (CBDC) by 2030.
This initiative is part of the country’s broader Economic Growth Strategy for 2026, which also includes the establishment of a licensing system for stablecoin issuers.
Companies like Tether will be required to have 100% reserve asset backing, ensuring that users can redeem their stablecoins with guaranteed rights.
This regulatory move is intended to increase stability in the stablecoin market, which has faced growing scrutiny worldwide.
Looking Forward: The Future of South Korean Crypto Regulations
The planned regulatory changes for corporate crypto investments represent a significant pivot for South Korea, which had previously taken a cautious approach to cryptocurrencies and blockchain technology.
With the new guidelines set to release soon, South Korea is positioning itself to be a key player in the global digital asset ecosystem.
As the FSC rolls out its final regulations in early 2026, the market will be closely watching how these changes impact both domestic and international investments in digital assets.
With the potential for large-scale corporate participation, the country’s crypto markets could soon see a surge in capital flow, potentially spurring further innovation in blockchain technology and digital currency applications.
South Korea’s evolving regulatory landscape could be a game-changer, not only for businesses but for the entire digital asset ecosystem.
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