South Korea‘s Financial Services Commission (FSC), the country’s top finance sector regulator, is preparing to lift a ban on corporate investments in digital assets by setting a 5% cap, according to local media reports.
According to a report from local outlet Seoul Economic Daily, the FSC has put together new ‘virtual currency trading guidelines for listed corporations’ that will allow listed companies and professional investors to invest up to 5% of their equity capital in digital assets such as Bitcoin and Ethereum.
Citing a “senior financial industry official familiar with the matter,” the report stated that the regulator will release the final guidelines in January or February, with trading to potentially start later this year.
Along with the annual deposit (investment) limit of 5% of equity capital, the report stated that investment targets are the top 20 stocks by market capitalization, as disclosed by the five major domestic digital asset exchanges.
It added that discussions are still underway regarding whether to include U.S. dollar stablecoins, such as USDT, in the permitted investments.
The new guidelines align with South Korea’s recent shift in digital asset policy, which has seen the country move away from its longstanding digital currency skepticism towards embracing the sector.
South Korea’s change of heart
In May 2025, the FSC announced that local non-profits and exchanges would henceforth be able to cash out their digital assets if they met all the compliance requirements.
This was an early sign of a possible change in approach from the government, as digital currency sales by corporations had been banned in South Korea since December 2017, to prevent exchanges from competing with their users and avoid unchecked speculation.
In September, another signal of changing tides came in the form of reports that South Korea was about to lift a seven-year restriction on virtual asset trading and brokerage businesses being recognized as ‘venture companies.’ This would enable them to apply for tax breaks and financing support.
“This regulatory improvement is a measure to secure future growth engines in line with the global trend of the digital asset industry,” said Han Seong-sook, Minister of SMEs and Startups, at the time. “We will focus our policy capabilities on fostering a transparent and responsible ecosystem to facilitate the smooth inflow of venture capital and the growth of new industries.”
This apparent U-turn in South Korean lawmakers’ attitude towards digital assets may have several motivating factors, one being the pro-crypto policies of U.S. President Donald Trump, who took office in January.
Trump’s ongoing mission to legitimize the digital asset sector, which has been approached by the space beyond the U.S. in 2025, includes the United Kingdom, the EU, Japan, and possibly South Korea as well.
Another reason could be the recent increase in digital asset trading and adoption in South Korea, as evidenced by Chainalysis’ Crypto Adoption Index 2025, which saw South Korea move up to 15th in the global rankings from 19th in 2024.
Whatever the motivation, South Korean regulators and lawmakers appear to be taking the lead from this ever-expanding number of adopters in the country, as they gradually come around to the digital asset sector.
Watch: What’s ahead for crypto regulation? Highlights from Blockchain Futurist Conference 2025
Source: https://coingeek.com/south-korea-sets-5-cap-on-corporate-digital-asset-investments/
