South Korea’s Monetary Companies Fee is contemplating a rule that will cap company cryptocurrency investments at 5% of an organization’s fairness capital, in response to native media studies, because the nation strikes towards easing its long-standing restrictions on institutional crypto buying and selling.
Seoul Financial Day by day reported that the FSC has drafted buying and selling pointers for listed firms {and professional} traders, with a last model anticipated as early as January or February. Precise company buying and selling might start later this yr, the report mentioned.
Below the proposal, eligible corporations could be allowed to allocate as much as 5% of fairness capital per yr to digital belongings, restricted to the highest 20 cryptocurrencies by market worth. Whether or not U.S. greenback stablecoins corresponding to USDT could be included continues to be being mentioned, the report added.
The rules are a part of a broader effort to part out what has successfully been a ban on institutional participation. South Korea started loosening the foundations in mid-2025, permitting nonprofits and crypto exchanges to promote sure holdings. The FSC has beforehand signaled that listed corporations {and professional} traders could be allowed to commerce.
The proposed 5% restrict seems designed to scale back balance-sheet danger and dampen volatility issues if company participation ramps up.
Authorities are additionally anticipated to incorporate commerce execution guardrails, together with break up buying and selling guidelines and worth limits, to handle market influence as liquidity expands.
Analysts mentioned flows would seemingly focus in bitcoin and, to a lesser extent, ether even when the investable universe consists of the highest 20 tokens, with restricted spillover into smaller belongings.
Market contributors are additionally watching the Digital Asset Primary Act, anticipated within the first quarter, which might form guidelines for stablecoins and spot crypto ETFs.
