"9-year ban comes to an end" Korean companies can legally buy coins, FSC new regulations to be implemented this year

Long-term restrictions on Korean companies investing in cryptocurrencies are about to end. The Korea Financial Services Commission (FSC) is officially advancing a regulatory framework for corporate digital asset investments, with detailed trading guidelines for listed companies and professional investors expected to be announced in the first half of this year. This shift signifies Korea’s move from years of strict regulation toward a more structured market opening, creating new opportunities for institutional capital to enter.

According to the Seoul Economic Daily, the FSC has completed an initial draft, with the final version expected to be released in January or February 2026. If smoothly implemented, Korean listed companies could legally include digital assets on their balance sheets as early as 2026, breaking a nine-year investment ban.

Investment Limits and Scope Restrictions, 5% Cap to Prevent Excessive Speculation

To prevent financial risks caused by excessive speculation, new regulations set up multiple protective mechanisms:

Investment Cap: Companies and professional investors can allocate up to 5% of their shareholder equity capital annually to purchase cryptocurrencies. This percentage may seem conservative, but for companies new to digital assets, initial approaches are often cautious, so the actual constraint is relatively limited.

Investment Targets: Currently limited to the top 20 cryptocurrencies by market capitalization. Based on the latest market data, Bitcoin’s circulating market cap reaches $1,796.96B, and Ethereum’s is $363.14B. These two major coins will be the primary focus of institutional funds. According to Presto Research researcher Min Jung, “Since the investment scope is limited to the top 20 by market cap, funds are expected to concentrate on Bitcoin and Ethereum, with limited gains for other competing coins.”

Stablecoins Inclusion Pending, Mainstream Coins Focus of Capital

Whether USDT, USDC, and other dollar-pegged stablecoins will be included in the legal purchase list is still under discussion by regulators. This issue involves market stability and policy direction, which could significantly impact future capital allocation. If stablecoins are not included, companies purchasing coins will face greater price volatility risks, potentially further concentrating funds into BTC and ETH.

Order Splitting Mechanism and Price Limits to Prevent Large-Scale Volatility

To prevent market turbulence caused by large transactions, the new guidelines incorporate mechanisms such as “order splitting” and “price limits.” Order splitting divides large orders into multiple smaller trades to smooth entry and exit; price limits set reasonable transaction price ranges to prevent abnormal fluctuations. These measures demonstrate regulators’ emphasis on market stability and provide clearer trading frameworks for institutional investors.

“Digital Asset Basic Law” Pending, Second-Phase Regulatory Framework to Take Shape

Market focus has shifted to the “Digital Asset Basic Law,” expected to be introduced in the first quarter of 2026. Seen as a “second-phase comprehensive regulation,” this legislation will set key policies, including the issuance and trading regulations of cryptocurrency spot ETFs and the establishment of a regulatory framework for Korean won stablecoins.

The advancement of these policies marks a shift in the stance of Korean regulators. As early as 2025, Korea allowed non-profit organizations and cryptocurrency exchanges to sell their holdings, and later announced plans to open trading to listed companies and professional investors. From bans to openings, from individual exemptions to systematic regulation, Korea is drawing a new chapter for corporate cryptocurrency investments and entering a more vibrant market era.