South Korea ends 9-year corporate crypto ban; listed companies can invest up to 5% of their equity in cryptocurrencies

Mars Finance reports that according to local media, the Korea Financial Services Commission (FSC) has finalized guidelines allowing listed companies and professional investors to trade cryptocurrencies, ending a 9-year ban on corporate crypto investments. Eligible companies can invest up to 5% of their annual capital in the top 20 cryptocurrencies by market cap on Korea’s five major exchanges. Approximately 3,500 entities (including listed companies and registered professional investment institutions) will gain market access, potentially releasing trillions of Korean won in funds. Despite the welcome policy shift, industry critics argue that the 5% cap is too conservative. The United States, Japan, Hong Kong, and the European Union do not impose such restrictions on corporate crypto holdings. Critics warn that this could hinder the emergence of Korean digital asset treasury companies similar to Japan’s Metaplanet. The FSC plans to release the final guidelines between January and February, with corporate trading expected to begin by the end of the year.