South Korea Plans 5% Limit On Corporate Cryptocurrency Holdings

TLDR

Table of Contents

South Korea may limit corporate crypto investment to 5% of equity capital.
The proposal includes top 20 cryptocurrencies, stablecoins still under review.
Corporate crypto trading is expected to begin in South Korea in 2026.
Digital Asset Basic Act will clarify rules for stablecoins and crypto ETFs.

South Korean financial authorities are proposing a new limit on corporate investment in cryptocurrencies. The Financial Services Commission (FSC) plans to restrict listed companies and professional investors from allocating more than 5% of their equity capital to crypto assets annually.

NEWS: 🇰🇷 South Korea has ended its nine-year ban on corporate crypto investing, allowing listed companies and professional investors to allocate up to 5% of equity into the top 20 cryptocurrencies by market cap on the country’s major crypto exchanges. pic.twitter.com/TWjMiA5hYs
— SolanaFloor (@SolanaFloor) January 12, 2026

The guideline, reported by Seoul Economic Daily, is part of a broader plan to manage corporate exposure to digital assets. A finalized version of the rule is expected between January and February 2026, with actual trading anticipated to begin later this year.

Investment Limited to Top 20 Cryptocurrencies

Under the proposed framework, companies will only be allowed to invest in the top 20 cryptocurrencies by market capitalization. The list of eligible tokens is not final, and discussions are ongoing regarding the inclusion of stablecoins such as Tether (USDT).

The FSC intends to enforce these measures to reduce volatility and prevent excessive corporate risk-taking. The proposed rule will apply to both listed firms and institutional investors. This move follows the mid-2025 decision to lift the ban on institutional crypto trading for non-profits and crypto exchanges.

Conservative Cap Meant to Ease Market Entry

Analysts have noted that the 5% allocation limit is a cautious step. According to Min Jung, an associate researcher at Presto Research, “While the 5% allocation cap may seem conservative, given this is the first step, it’s unlikely many companies would want to exceed that level anyway.”

This approach is expected to encourage careful participation while still enabling corporate access to the crypto market. Most investment flows are expected to concentrate in Bitcoin and Ethereum. Altcoins are likely to see limited interest under the current market structure.

Rules Also Include Price Limits and Trade Splits

The new guideline will also introduce controls such as price limits and trade split rules. These are intended to protect markets from sudden liquidity shocks and reduce the risk of extreme price movements.

Firms will be required to follow these execution rules when entering or exiting positions in approved crypto assets. These controls are designed to ensure that the expected increase in market activity remains orderly and within a regulated framework.

Regulatory Expansion with Digital Asset Basic Act

South Korea is also preparing to introduce the Digital Asset Basic Act, a major legislative package that will provide clearer regulatory direction for the digital asset market. The law is expected in the first quarter of 2026.

The act will cover various areas including stablecoin rules and the introduction of spot crypto ETFs. Industry participants are closely monitoring how the law will handle won-pegged stablecoins, which may be introduced for local trading and settlements.

Min Jung noted, “The bigger issue to watch in Korea remains stablecoin regulation, particularly any framework around a won-denominated stablecoin.”