South Korea To Lift 9-Year Ban On Corporate Crypto Access
- South Korea may lift the corporate crypto ban under new FSC trading guidelines in 2026.
- Listed firms could invest up to 5% in the top 20 cryptos on South Korea’s major exchanges.
- Stablecoin approval is still debated, as the final phase may open access to 3,500 entities.
South Korea is reportedly preparing to end its nine-year ban on corporate crypto investment. The change would allow listed companies and professional investors to trade digital assets under new rules. It would mark a shift from broad restrictions toward controlled market access. Regulators are designing limits to reduce risk while expanding participation.
A local media report said officials are drafting Virtual Currency Trading Guidelines for Listed Corporations. The framework would permit corporate trading on South Korea’s five major exchanges. It would apply to listed firms and recognized professional investors. The guideline proposal outlines who could enter the market and under what conditions.
South Korea Sets 5% Corporate Crypto Cap
If implemented, corporate participants could invest up to 5% of their equity capital in crypto. The investment scope would be limited to the top 20 cryptocurrencies by market capitalization. The limit sets a fixed ceiling on balance sheet exposure. The asset list narrows trading to large-cap tokens.
The proposed shift is described as the third and final stage of the Financial Services Commission rollout plan. The FSC launched the three-phase approach in February 2025. The plan was designed to expand corporate access step by step. The final phase would complete the process and widen eligibility.
The final phase is expected to grant access to about 3,500 entities once the rule takes effect. That would significantly expand institutional participation in domestic crypto markets. It would also increase the compliance load for exchanges and trading venues.
Stablecoin inclusion remains unresolved. Regulators are still debating whether dollar-pegged stablecoins should be included in the permitted investment list. The discussion includes stablecoins such as Tether’s USDT.
Related: South Korea’s FIU Reopens Door for Binance’s Comeback: Report
South Korea restricted corporate and bank trading of crypto under regulations introduced in 2017. Officials said the policy aimed to reduce overheated speculation in digital assets. Authorities also linked the move to money laundering concerns. The ban kept corporate balance sheets away from direct crypto exposure.
South Korea Eases Crypto Access as New Law Stalls
In recent years, regulators have gradually adjusted their approach. Last year, South Korea began allowing non-profit organizations to liquidate crypto holdings for financial management purposes. Crypto exchanges were also allowed to liquidate holdings under specific conditions.
Even so, broader crypto rulemaking has faced delays. The Digital Asset Basic Law has been postponed to 2026, according to earlier reporting referenced in the text. The bill would create standards for stablecoin issuance, custody requirements, and investor protection rules.
Stablecoin oversight is one of the key issues still under debate. Regulators are weighing whether supervision of stablecoin reserves should be handled by the FSC or the Bank of Korea. Officials are also discussing which institutions should be eligible to issue won-pegged stablecoins.
However, South Korea’s Supreme Court ruled last week that Bitcoin held on exchanges could be seized. The decision confirmed digital assets could be treated as seizure targets under the Criminal Procedure Act. The dispute focused on whether crypto qualifies as property subject to confiscation.
The case arose from a money laundering investigation. Local police seized 55.6 bitcoins worth about 600 million won from an exchange account linked to a person identified as Mr. A. The assets were seized as part of the investigation record. Mr. A challenged the seizure by arguing that Bitcoin in an exchange account is not a physical object under Article 106 of the Criminal Procedure Act.
Together, the reported corporate guidelines and the Supreme Court decision show how South Korea is shaping its crypto policy. The country appears to be expanding market access for institutional actors while reinforcing enforcement capacity. The draft framework adds exposure limits and asset restrictions, aiming to control risk.
