Korean companies' digital art shift: crypto asset investment limit of 5%, restricted to the top 20 cryptocurrencies

South Korea is experiencing a significant turning point in digital asset development. This country, which has long banned corporate investments in cryptocurrencies, is about to open up new asset allocation possibilities. According to the latest reports, the Korea Financial Services Commission (FSC) has drafted regulatory guidelines for corporate cryptocurrency investments, symbolizing a shift from strict regulation to orderly openness.

In this digital asset progression, Korea’s regulatory mindset is also evolving. The nine-year ban on corporate cryptocurrency investments has officially ended, replaced by a comprehensive institutional framework. According to Seoul Economic Daily, the FSC has preliminarily drafted trading guidelines for cryptocurrencies targeting listed companies and professional investors, with the final version expected to be released soon. If progress goes smoothly, Korean companies could legally include cryptocurrencies on their balance sheets in the near future.

End of Nine-Year Ban, a New Chapter in Digital Asset Development

The issuance of this new guideline continues Korea FSC’s recent practical trend of gradually lifting the ban on “institutions trading crypto assets.” By mid-last year, Korea had already permitted non-profit organizations and cryptocurrency exchanges to sell their holdings of cryptocurrencies. Regulators also indicated that they would open the market for listed companies and professional investors to trade cryptocurrencies. These measures collectively mark significant progress in Korea’s institutional digital asset landscape.

Strict Safeguards: Dual Restrictions on Investment Proportion and Coin Types

To prevent excessive speculation by enterprises leading to financial risks, the new guidelines establish multiple firewall mechanisms:

Investment Cap: Companies and professional investors can allocate up to 5% of their shareholder equity capital (funds invested by shareholders) annually for purchasing cryptocurrencies. This limit may seem conservative, but Min Jung, a research associate at Presto Research, pointed out that for companies new to crypto assets, a cautious approach is typical, so it does not constitute a substantial constraint.

Scope of Investment: Currently limited to the top 20 cryptocurrencies by market capitalization. This restriction aims to balance liquidity and risk control.

Stablecoins Pending Discussion: Whether USD-pegged stablecoins like USDT and USDC will be included in the legal purchase list is still under discussion.

Trading Safeguards: To prevent market volatility caused by large transactions, the guidelines will also incorporate technical protective measures such as “order splitting” and “price limits.”

Market Outlook: Bitcoin and Ethereum to Benefit Most

The most immediate beneficiaries of this policy will be the largest market cap assets. Min Jung analyzed, “This will inject considerable liquidity into the market, but since the scope is limited to the top 20 cryptocurrencies, funds are expected to flow mainly into Bitcoin and Ethereum, with limited opportunities for other competing coins.”

However, this limited opportunity still holds significance for some mid-cap cryptocurrencies. As funds concentrate, it may also create new market structures, driving valuation discovery processes for these mainstream assets.

Future Milestones: Digital Asset Regulations Near Completion

The most closely watched development among Korean crypto circles and investors is the upcoming release of the “Digital Asset Basic Act.” Seen as a “second-phase comprehensive regulation,” this bill will set the tone for key policies, including the issuance and trading regulations of spot cryptocurrency ETFs, and will establish a regulatory framework for the Korean won stablecoins.

All of this points in the same direction: Korea’s digital asset development is accelerating. From the lifting of institutional bans, to the opening of corporate investment limits, and the imminent release of comprehensive regulations, Korea is building a complete and mature institutional system for the crypto market. This not only changes the domestic investment landscape but also offers new governance ideas for the global digital economy.