South Korea Plans to Lift Corporate Crypto Investment Ban

TLDR

• New regulations may allow 5% equity investment in crypto.
• Approximately 3,500 companies could be affected by changes.
• Final approval of regulations expected in early 2026.

South Korea is reportedly planning to end its 2017 ban on corporate cryptocurrency investments. According to secondary sources, the country’s Financial Services Commission (FSC) is drafting new regulations to permit publicly-listed companies and professional investors to allocate up to 5% of their equity capital annually into cryptocurrencies.

This move would potentially affect around 3,500 entities, with trading expected to commence by the end of 2026. The regulations are still pending final approval, expected in January or February 2026. President Lee Jae-myung, who took office in 2025, leads the current administration, which is considered crypto-friendly.

Details of the Proposed Regulations

The draft guidelines reportedly focus on allowing investments in the top 20 cryptocurrencies by market capitalization. These would be traded on Korea’s five major crypto exchanges. The list of eligible cryptocurrencies could include major assets like Bitcoin (BTC) and Ethereum (ETH), though specific assets have not been confirmed by primary sources.

The inclusion of stablecoins such as USDT is also under discussion. However, further official information is not available. The regulations aim to regulate significant investments within the cryptocurrency sector, offering a structured approach to corporate involvement.

Economic Implications Under Consideration

Reports suggest the initiative could influence a redirection of $52 billion in offshore capital. Nevertheless, this figure lacks confirmation from primary sources. This potential redirection remains speculative, with no specific financial allocations, grants, or institutional involvement specified by officials.

The South Korean authorities have not released any data regarding on-chain metrics such as Total Value Locked (TVL), liquidity, or staking. It remains unclear if any similar measures have been implemented in the past. The outcome of these discussions may shape the future landscape of cryptocurrency investments in South Korea.

Awaiting Formal Approval

The draft regulations need approval from relevant authorities, expected early in 2026. This will determine whether South Korean firms can participate in cryptocurrency markets. No confirmation has been made from primary government channels or financial regulators at this stage.

While rumors of potential guidelines circulate, investors and companies await clear legislative action. With official announcements lacking, the timeline for the final decision remains speculative.