South Korea Ends 9-Year Corporate Crypto Ban, Sets 5% Investment Cap
South Korea is dismantling a near-decade prohibition on corporate cryptocurrency investments. New guidelines will permit listed companies and professional investors to allocate up to 5% of equity capital into top-20 market cap cryptocurrencies traded on five major domestic exchanges.
The Financial Services Commission (FSC) finalized its three-phase rollout plan initiated in February 2025. Approximately 3,500 entities are expected to gain market access upon implementation. Regulatory discussions continue regarding potential inclusion of dollar-pegged stablecoins like Tether’s USDT.
The 2017 ban—originally implemented to curb speculative excess and money laundering risks—succumbs to global institutional adoption trends. This pivot reflects Seoul’s strategic alignment with digital asset maturation while maintaining measured capital controls.
