South Korea Ends Corporate Crypto Investment Ban
- South Korea lifts nine-year ban on corporate cryptocurrency investments.
- Approximately 3,500 entities can invest in top 20 cryptocurrencies.
- Potential capital injection in crypto market estimated at tens of trillions of won.
South Korea’s Financial Services Commission is set to lift a nine-year ban on corporate cryptocurrency investments, enabling companies to invest up to 5% of annual equity capital.
This decision may inject tens of trillions of won from over 3,500 corporations, impacting major cryptocurrencies while excluding stablecoins, potentially boosting local blockchain development.
South Korea’s Financial Services Commission (FSC) announced the lifting of a nine-year ban on corporate cryptocurrency investments. The ban was originally put in place in 2017 to address concerns related to speculation and money laundering.
The FSC’s new guidelines, finalized on January 10, 2026, allow companies and professional investors to allocate up to 5% of their annual equity capital to the top 20 cryptocurrencies. Investments are restricted to Korea’s five major regulated exchanges.
The policy shift allows around 3,500 eligible entities, including listed companies, to enter the cryptocurrency market. This move is expected to stimulate the blockchain sector and lead to increased liquidity in Bitcoin and possibly Ethereum. As Min Jung, Associate Researcher at Presto Research, noted, “This improvement in liquidity and flows is likely to concentrate in Bitcoin and possibly Ethereum over altcoins.” – Presto Research Insights
Given the potential capital inflow, this development aligns with South Korea’s 2026 Economic Growth Strategy. However, strict trading rules and limits are in place to manage market risks, focusing on enhancing financial market stability.
The regulation mandates investments be conducted on regulated local exchanges, with stablecoins like USDT currently excluded from eligibility. These new guidelines are expected to take effect by the end of 2026, increasing corporate interaction with digital assets.
Historical data indicates similar regulatory changes have led to increased investment in blockchain and technological innovations. This policy could also influence the local development of won-pegged stablecoins and further institutional adoption of digital currencies.
