South Korea Proposes 5% Cap on Corporate Crypto Investments
South Korea’s Financial Services Commission (FSC) is considering a rule that would limit listed companies’ cryptocurrency holdings to 5% of their equity capital, part of the country’s move to ease restrictions on institutional crypto trading.
Seoul Economic Daily reported that the FSC has drafted guidelines for listed companies and professional investors, with a final version expected by January or February. Corporate trading under the new framework could begin later this year.
Under the proposal, eligible firms could allocate up to 5% of equity annually to digital assets, restricted to the top 20 cryptocurrencies by market value. The inclusion of U.S. dollar stablecoins such as USDT is still under discussion.
The limit is intended to mitigate balance-sheet risk and reduce volatility as corporate participation grows. Trade safeguards, including split trading and price limits, are also expected. Analysts predict investment flows will concentrate in bitcoin and ether, with limited impact on smaller tokens.
Market participants are also watching the upcoming Digital Asset Basic Act, expected in the first quarter, which could establish rules for stablecoins and spot crypto ETFs.
