South Korea plans to cap corporate and professional crypto holdings at 5% of equity, steering most institutional flows into top‑20 coins while it finalizes ETF and stablecoin rules.
The Financial Services Commission (FSC) has drafted guidelines that would permit corporations to invest in only the top 20 cryptocurrencies by market capitalization. The inclusion of dollar stablecoins like USDT is still under debate.
Final rules are anticipated by February and will introduce price limits and split trading mechanisms to curb volatility as institutional investors enter the market. These measures are expected to concentrate liquidity in Bitcoin and potentially Ethereum.
The forthcoming Digital Asset Basic Act will establish regulations for won-stablecoins and pave the way for South Korea's first spot crypto ETFs, which are considered pivotal for the local market structure.
Details of the Proposed Crypto Cap and Investment Guidelines
South Korea’s Financial Services Commission is planning to limit corporate and professional investor cryptocurrency holdings to 5% of equity capital annually, according to reports.
Under the draft guidelines, corporations would be permitted to invest in the top 20 cryptocurrencies by market capitalization. The inclusion of U.S. dollar-pegged stablecoins such as USDT remains under discussion, according to the reports.
Timeline and Market Impact of New Regulations
Finalized rules are expected between January and February, with corporate trading anticipated later this year, the reports stated. The proposed framework will also establish price limits and split trading rules designed to mitigate volatility as corporate participation increases.
The cap is likely to improve liquidity but will concentrate flows in Bitcoin (BTC) and potentially Ethereum, with limited impact on smaller altcoins, according to analysts. The 5% limit may not pose a significant constraint, as most companies are unlikely to exceed it in the initial stages, observers noted.
Upcoming Digital Asset Basic Act and Stablecoin Regulations
Market participants are monitoring the country’s upcoming Digital Asset Basic Act, expected in the first quarter. The legislation will formalize regulations for won-pegged stablecoins and introduce the nation’s first spot crypto exchange-traded funds, according to reports.
Stablecoin rules are viewed as particularly influential for South Korea’s broader crypto ecosystem, market observers stated.
FSC's Approach to Institutional Crypto Access
The FSC’s measures reflect a cautious approach to expanding institutional crypto access while safeguarding market stability amid growing corporate interest, according to analysts.