Corporate Crypto Boom Begins

Person holding Bitcoin coin, NFT text on screen.

South Korea’s plan to lift a 9-year ban on corporate cryptocurrency investments could reshape global crypto dynamics.

Story Highlights

South Korea to lift a 2017 ban on corporate crypto investments, allowing up to 5% equity allocation annually.
New regulations are expected by February 2026, with trading anticipated by the year-end.
Investment limited to top 20 cryptocurrencies on local exchanges; stablecoin inclusion remains undecided.
Potential influx of trillions of won from over 3,500 corporations.

South Korea’s Move to Revitalize Corporate Crypto Investments

South Korea’s Financial Services Commission (FSC) is preparing to lift a longstanding ban on corporate cryptocurrency investments, a decision expected to infuse the market with billions from over 3,500 corporations. This regulatory shift aims to balance innovation and risk, as companies will be allowed to allocate up to 5% of their equity capital annually to the top 20 cryptocurrencies by market capitalization. The move comes under the progressive administration of President Lee Jae-myung, who has been advocating for the reintegration of digital assets since his 2025 inauguration.

The guidelines, expected by February 2026, will permit trading by year-end, providing a significant boost to the local crypto exchanges, including Upbit and Bithumb. These venues are poised to benefit from increased liquidity and trading volume. However, the plan comes with restrictions, such as capping investments and limiting them to top coins on local exchanges, reflecting a cautious approach compared to unrestricted regimes in the US, Japan, and the EU.

Background and Regulatory Context

The ban, initially imposed in 2017 due to concerns over financial instability and speculative activities, forced many South Korean firms to invest overseas. The gradual softening of this ban signifies a new era of crypto-friendly policies under President Lee’s administration. Despite the easing, the 5% cap and the focus on only the top 20 cryptocurrencies suggest a cautious approach, aiming to mitigate risks while fostering innovation. The inclusion of stablecoins remains under debate, pending further regulatory clarity.

In recent developments, as of January 12, 2026, the FSC has shared its latest guidelines with a dedicated crypto working group. The final guidelines are anticipated in January or February, setting the stage for corporate trading later in the year. This regulatory thaw aligns with global trends and represents a strategic move to position South Korea competitively in the global crypto race.

Potential Impact and Industry Reactions

The anticipated policy shift is expected to improve market liquidity, especially for major cryptocurrencies like Bitcoin and Ethereum. The influx of capital from corporations could invigorate the local blockchain and digital asset technology sectors. However, industry insiders express concerns that the 5% cap might limit fund inflows and hamper the development of specialized virtual currency firms. This limitation could potentially disadvantage Korea compared to more liberal markets.

South Korea To Lift Ban On Corporate Crypto Investment: Reporthttps://t.co/YH8jgI3bny

— Tom Pauken II. (@tmcgregorchina) January 13, 2026

Despite these concerns, the move is largely seen as a positive step toward integrating digital assets into South Korea’s financial landscape. It could stimulate domestic investments and reduce the need for overseas circumvention. The long-term impacts include potential boosts to local startups and the acceleration of won-pegged stablecoins and spot ETFs.