South Korea Ends Nine-Year Ban Allowing Corporate Crypto Investment in Top Digital Assets

South Korea’s Financial Services Commission has approved new rules permitting companies to engage in corporate crypto investment for the first time since 2017, signaling a major shift in Asia’s digital asset landscape.

In a historic regulatory turnaround, South Korea is set to lift its long-standing restriction on corporate crypto investment. The Financial Services Commission (FSC) has finalized new guidelines that will allow listed firms and professional investors to allocate up to 5 percent of their equity capital into leading digital assets, marking a major shift in the nation’s approach to blockchain finance.

South Korea Reopens the Door for Corporate Crypto Investment

After nearly a decade of restrictive policy, South Korea is finally opening the gate for corporate crypto investment. The FSC has reportedly shared updated investment guidelines with its crypto working group, detailing how corporations will be permitted to gain exposure to the top 20 cryptocurrencies by market capitalization. This move effectively ends the nine-year ban that began in 2017, when authorities halted institutional participation in digital assets over concerns related to money laundering and market speculation.

According to Seoul Economic Daily, the FSC aims to publish the final set of investment rules within the next two months. Once implemented, companies will be allowed to make crypto investments through the country’s five largest regulated exchanges. The rule applies to both listed corporations and licensed professional investors, who can allocate up to 5 percent of their equity capital toward digital assets.

The framework emphasizes transparency and oversight, ensuring all transactions are executed through regulated platforms. Discussions are also ongoing about whether dollar-pegged stablecoins such as USDT will be included in the approved list of digital assets.

Potential Market Impact of Corporate Crypto Investment

The decision is expected to inject massive liquidity into the crypto markets. Analysts suggest that if South Korea’s largest corporations take full advantage of the 5 percent allocation cap, it could result in tens of trillions of won flowing into the digital asset ecosystem.

For instance, tech conglomerate Naver, with over 27 trillion won in equity capital, could theoretically acquire as much as 10,000 Bitcoin under the new rules. This kind of corporate crypto investment could significantly strengthen local market confidence while aligning South Korea with global trends in institutional crypto adoption.

Market observers also anticipate that this regulatory shift could accelerate other pending developments, including the launch of a national stablecoin and the approval of spot Bitcoin exchange-traded funds. The growing policy support for crypto ETFs across the country may find renewed momentum now that corporate investment has been authorized.

Additionally, the change could lead to a resurgence of local blockchain startups and digital asset treasuries. Many South Korean firms have been forced to invest through overseas subsidiaries due to the restrictive environment at home. The new allowance for corporate crypto investment will enable domestic participation and foster innovation in blockchain technology, financial products, and decentralized infrastructure.

A Strategic Push Toward Digital Currency and Stablecoins

The South Korean government has also signaled a strong commitment to advancing its national digital currency strategy. Recent reports reveal that the administration aims to process up to 25 percent of national treasury transactions through a central bank digital currency by 2030. This initiative forms part of the country’s broader 2026 Economic Growth Strategy, which places digital transformation at its core.

Furthermore, the government plans to introduce a licensing framework for stablecoin issuers. Under this system, issuers like Tether will be required to maintain 100 percent reserve backing for their tokens while ensuring that users can redeem stablecoins at any time. The framework aims to enhance consumer protection and market stability while promoting innovation in the stablecoin ecosystem.

These coordinated steps corporate crypto investment reform, CBDC integration, and stablecoin regulation highlight South Korea’s strategy to position itself as a global leader in digital finance. The approach not only strengthens domestic competitiveness but also ensures compliance with evolving international financial standards.

The New Era of Corporate Crypto Investment in Asia

South Korea’s decision represents a significant policy reversal that could reshape Asia’s crypto investment landscape. By legitimizing corporate crypto investment, the government is sending a clear signal of trust in the long-term viability of digital assets. Industry participants expect this move to attract institutional investors, technology firms, and financial institutions looking to diversify their holdings with crypto exposure.

The announcement also places South Korea alongside other progressive nations like Japan and Singapore that have already embraced regulated institutional crypto participation. With the upcoming release of the FSC’s final guidelines, the corporate sector in South Korea is preparing for what many see as the dawn of a new digital asset era.

As regulatory clarity continues to improve and capital flows into blockchain-based markets, South Korea’s financial ecosystem stands on the verge of transformation. The restoration of corporate crypto investment is not just a policy shift it marks the beginning of a renewed national vision for innovation, transparency, and growth in the global digital economy.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. 

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