South Korea Takes Step to Open Crypto Market to Corporate Investors
South Korea is poised to revolutionize its digital asset landscape by allowing listed companies and professional investment firms to trade cryptocurrencies. Financial regulators have finalized draft guidelines that will permit corporate participation for investment and treasury purposes, with a final decision expected within weeks. This MOVE could unlock substantial institutional capital and reshape the domestic crypto market.
The Financial Services Commission has introduced new rules to govern cryptocurrency trading, capping annual investments at 5% of a company's equity capital to manage risk. Eligible assets will be restricted to the top 20 cryptocurrencies by market value, as identified by South Korean authorities. The Framework Act on Digital Assets, set to take effect in Q1, will formalize these regulations.
