South Korea's Financial Services Commission has lifted a nine-year ban on corporate crypto investment, allowing listed companies to invest up to 5% of their capital in major cryptocurrencies.
This regulatory change could catalyze substantial capital influx into the digital asset market, amidst potential impacts on exchange apps pending local compliance checks.
South Korea Lifts 2017 Corporate Crypto Ban
The Financial Services Commission (FSC) of South Korea has lifted its long-standing corporate crypto investment ban, initially imposed in 2017, addressing concerns of speculation and money laundering. This change enables significant new investment opportunities.
Under the new guidelines, listed companies and professional investors can allocate up to 5% of equity capital towards the top 20 cryptocurrencies by market capitalization. This shift indicates a strategic adjustment in South Korea's regulatory stance on cryptocurrencies.
3,500 Firms May Enter Crypto Market
The lifting of the ban allows approximately 3,500 companies and investors to potentially channel trillions of won into cryptocurrency markets. This could pave the way for substantial capital inflow into the local crypto industry, previously constrained by the 2017 ban.
Insights suggest this regulatory change might lead to increased cryptocurrency adoption in South Korea, boosting local exchanges. It comes after a prolonged period of capital outflows estimated at $110 billion in 2025 due to restrictions, now potentially reversed.
Regulatory Shift Post-ICO Boom Constraints
The 2017 ban was a response to the ICO boom and the associated financial risks it posed. South Korea's recent easing of restrictions can be seen as a significant policy realignment, aiming to position itself competitively in the global crypto economy.
Cryptodailyalert experts view this policy shift as a catalyst for further blockchain technological advancements in South Korea. This decision could foster innovation in digital asset management and financial services, establishing South Korea as a pioneering force in crypto finance. The information provided focuses primarily on the actions taken by the Financial Services Commission (FSC) and does not contain primary source quotes from notable individuals or organizations regarding the updates.