South Korea’s Monetary Providers Fee (FSC) has reportedly finalized pointers allowing listed corporations {and professional} traders to commerce cryptocurrencies.
The transfer ends a nine-year prohibition on company crypto funding and enhances the federal government’s broader “2026 Financial Development Technique,” which incorporates stablecoin laws and spot crypto ETF approvals introduced final week.
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Company Funding Framework
Below the FSC’s information pointers cited by a neighborhood media report, eligible firms can make investments as much as 5% of their fairness capital yearly. Funding targets are restricted to the top-20 cryptocurrencies by market capitalization on Korea’s 5 main exchanges.
Roughly 3,500 entities will achieve market entry as soon as the foundations take impact. These embrace publicly listed companies and registered skilled funding firms.
Whether or not dollar-pegged stablecoins comparable to Tether’s USDT qualify stays below dialogue. Regulators will even require exchanges to implement staggered execution and order dimension limits.
Market Context
The rules mark the primary regulatory inexperienced gentle for company crypto funding since 2017. Authorities banned institutional participation amid considerations about cash laundering.
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The extended prohibition has formed Korea’s crypto market in distinct methods. Retail traders account for practically 100% of buying and selling exercise. Capital flight reached 76 trillion received ($52 billion) as merchants sought alternatives offshore. The distinction with mature markets is stark. At Coinbase, institutional buying and selling comprised over 80% of quantity in H1 2024.
Trade contributors anticipate the opening to speed up momentum for a won-denominated stablecoin and home spot Bitcoin ETFs.
Trade Pushback
Whereas welcoming the coverage shift, business contributors argue the 5% ceiling is excessively conservative, citing that the US, Japan, Hong Kong, and the EU impose no comparable limits on company crypto holdings.
Critics warn the restriction may forestall the emergence of Digital Asset Treasury corporations—companies like Japan’s Metaplanet that construct company worth by way of strategic Bitcoin accumulation.
“Making use of extreme laws solely to crypto may go away Korea behind as international markets speed up,” one business official advised the outlet.
Subsequent Steps
The FSC plans to launch remaining pointers inside January or February. Implementation timing will align with the Digital Asset Primary Act, scheduled for legislative introduction in Q1 2025. Company buying and selling is predicted to start by year-end.