South Korea ends 9-year ban on corporate investment in cryptocurrency, listed companies can invest 5% of their equity to purchase cryptocurrencies

According to local media reports, the South Korean Financial Services Commission (FSC) has finalized guidelines allowing listed companies and professional investors to trade cryptocurrencies, ending a nine-year ban on corporate crypto investments.

Eligible companies can invest up to 5% of their equity each year in the top 20 cryptocurrencies by market capitalization on Korea's five major exchanges. Approximately 3,500 entities (including listed companies and registered professional investment institutions) will gain market access, potentially releasing hundreds of trillions of won in funds.

While the policy shift is welcomed, the industry criticizes the 5% cap as overly conservative. The United States, Japan, Hong Kong, and the European Union do not impose such restrictions on corporate crypto holdings. Critics warn that this may hinder South Korea from developing a digital asset treasury company similar to Japan's Metaplanet.

The FSC plans to release the final guidelines in January or February, with corporate trading expected to begin by the end of the year.