South Korea Lifts Ban on Corporate Crypto Investment
South Korea now allows listed companies to invest up to 5% of equity in top 20 cryptocurrencies, ending a 2017 ban.
- Ban on corporate crypto investment lifted after 7 years
- Companies can now invest up to 5% of equity in crypto
- Applies to top 20 cryptocurrencies by market cap
A Major Policy Shift in South Korea
In a landmark move, South Korea is reportedly lifting its long-standing ban on corporate cryptocurrency investment. According to local reports, listed companies in the country will now be permitted to allocate up to 5% of their equity into the top 20 cryptocurrencies by market capitalization.
This decision ends a 2017 restriction that had prohibited South Korean corporations from directly investing in digital assets. The policy change signals a growing acceptance of cryptocurrencies in mainstream finance and could open the door for increased institutional participation in the crypto market.
What the New Rule Allows
Under the updated framework, publicly traded companies can now diversify their portfolios by investing in established cryptocurrencies such as Bitcoin, Ethereum, and other top-ranking coins. The 5% limit ensures that crypto exposure remains balanced within a company’s overall investment strategy, reducing excessive risk while still allowing room for growth.
The regulation applies only to the top 20 cryptocurrencies by market cap, reinforcing the government’s cautious yet progressive stance. By restricting investments to the most stable and recognized digital assets, the policy aims to minimize volatility and potential misuse.
Implications for the Crypto Market
South Korea’s move could have ripple effects across Asia and beyond. As one of the most tech-savvy and crypto-engaged nations globally, Korea’s re-entry into institutional crypto investment could bring renewed momentum to the market. It also sets a regulatory precedent that other countries may observe closely.
With large corporations potentially entering the space, this could result in increased liquidity, higher trading volumes, and improved legitimacy for the crypto industry. The lifting of the ban aligns with South Korea’s broader push to modernize financial regulations while maintaining safeguards for stability and transparency.
This development marks a significant step forward for crypto adoption and demonstrates the increasing confidence traditional markets are placing in digital assets.
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