South Korea plans to set a 5% limit on corporate cryptocurrency investments, with institutional entry accelerating

Entering 2026, South Korea’s cryptocurrency regulation signals a key shift again. Several Korean media outlets disclosed that the Financial Services Commission (FSC) is studying a new regulation that plans to set the maximum proportion of corporate investments in cryptocurrencies at 5% of equity capital, aiming to guide institutional entry while controlling systemic risk.

According to the Seoul Economic Daily, the FSC has developed guidelines for cryptocurrency trading for listed companies and professional investors, with the final version expected to be announced as early as January to February 2026. The reports indicate that some corporate-level trading may officially commence within 2026, marking the practical phase of institutional crypto trading in South Korea.

Under the current discussion plan, corporations and professional investors can allocate up to 5% of their equity capital annually to the top 20 cryptocurrencies by market cap. Whether stablecoins like USDT are included in the qualified investment scope is still under evaluation by regulators, with no final conclusion yet.

Presto Research Deputy Researcher Min Jung analyzed that this policy will help improve market liquidity in the short term, but even if open to the top 20 cryptocurrencies, capital flow may still be highly concentrated. “Bitcoin is expected to be the main beneficiary, followed by Ethereum, while spillover effects on other assets are relatively limited.”

This proposed cap is seen as an important step in the FSC gradually lifting restrictions on institutional crypto trading. Since mid-2025, South Korea has allowed non-profit organizations and certain crypto-related institutions to dispose of their digital assets, and in the second half of 2025, trading permissions were further opened to listed companies and professional investors.

Regulatory documents also mention that to address potential liquidity shocks, guidelines may introduce split trading mechanisms and transaction price limits to reduce market volatility caused by concentrated buying and selling. Min Jung believes that the 5% ratio is not a strict constraint in practice, and most companies may not reach this limit in the initial stages.

Meanwhile, the market is closely watching the progress of the Basic Law on Digital Assets. This legislation is seen as South Korea’s second comprehensive crypto regulatory framework, covering the regulation of the Korean won stablecoin and the institutionalization of domestic spot crypto ETFs, expected to be introduced in the first quarter of 2026.

From the regulatory pace, this signals that South Korean authorities are gradually guiding institutional funds into the market under the premise of manageable risks. The corporate crypto investment limit is set within a manageable range, providing policy certainty for the market and clearly defining the boundaries for institutional participation in digital asset allocation. As the Basic Law on Digital Assets advances, South Korea’s crypto market is transitioning from exploratory openness to a more institutionalized phase.