South Korea Proposes 5% Equity Cap for Company Crypto Holdings

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Corporate cryptocurrency investments in South Korea may soon be restricted to 5% of equity capital. The country’s Financial Services Commission is crafting new guidelines to this effect, according to recent news reports.

Details emerged from a Sunday report by the Seoul Economic Daily, which stated the FSC’s draft guidelines for listed corporations and professional investors could be finalized in the coming months. Trading activity from these entities is projected to begin within the current year.

As outlined, the annual investment limit would apply only to cryptocurrencies ranked within the top 20 by market capitalization. The eligibility of US dollar-pegged stablecoins, including USDT, is still being debated by regulators.

Market analysts expect a cautious influx of institutional capital. Min Jung of Presto Research commented, “This will boost liquidity, but flows are likely to be concentrated in Bitcoin and Ethereum, offering little spillover effect to the broader altcoin market.”

These guidelines represent the next phase in a sequenced regulatory rollout. The FSC started by permitting crypto sales by non-profits and exchanges in 2025, with a stated goal of allowing broader institutional trading in the latter half of that year.