South Korea FSC Ends Nine-Year Crypto Ban on Corporate Cryptocurrencies

South Korea lifts nine-year ban on corporate cryptocurrencies, allowing listed companies to invest in cryptocurrencies.

South Korea's Financial Services Commission (FSC) ended its nine-year ban on corporate cryptocurrency investments on January 12, 2026. This change allows listed companies and professional investors to trade digital assets under specific guidelines.

The FSC of South Korea has finalized guidelines permitting listed companies and professional investors to trade cryptocurrencies. Under the FSC’s news guidelines, eligible corporate entities to invest up to 5% of their net assets annually in the top 20 cryptocurrencies by market capitalization on South Korea's five major exchanges. Approximately 3,500 entities will gain market access once the rules take effect. These include publicly listed firms and registered professional investment corporations.

This move of ending the nine-year prohibition on corporate crypto investment complements the government’s broader “2026 Economic Growth Strategy,” which includes stablecoin legislation and spot crypto ETF approvals announced last week.

The South Korean government revealed an ambitious digital currency policy on Friday, January 9. According to the report, the main objective is to execute 25% of all national treasury funds through a central bank digital currency (CBDC) by 2030.

As part of the 2026 Economic Growth Strategy, the project also calls for the introduction of a license mechanism for stablecoin issuers, like Tether, that will legally guarantee users' redemption rights and need 100% reserve asset backing. It's still up for debate whether dollar-pegged stablecoins like Tether's USDT are eligible. Additionally, regulators will mandate that exchanges employ order size restrictions and staggered execution.

Participants in the digital asset market have initially responded positively, seeing the development as a step toward greater liquidity and wider institutional engagement. As institutions adjust to the new framework, attitude suggests more organized access and possibly better market functioning, even if prominent industry leaders have not yet addressed the corporate allocation regulation in depth.

Staggered execution orders and size restrictions are examples of regulatory changes that exchanges must put in place to reduce possible risks. By limiting individual trade sizes and delaying order execution, these controls address concerns about market impact and concentration.

Furthermore, the classification of stablecoins remains unresolved and may have an impact on the instruments that businesses ultimately decide to allocate. Clarification on that issue could influence participation rates and the combination of assets that corporate treasuries take into account.