The Financial Services Commission (FSC) of South Korea has lifted the ban on corporate investments in cryptocurrencies, according to local media.
The final regulations will be published in January or February. Under the draft, legal entities will be allowed to invest up to 5% of their equity capital in coins from the top 20 by market capitalization. Stablecoins are not included in this list for now, with a decision on them to be made later.
Investments will only be permitted through the five largest regulated exchanges in the country: Upbit, Bithumb, Korbit, INEX, and Coinone.
The South Korean government banned corporations from investing in cryptocurrencies in 2017 due to concerns about money laundering.
Potential Impact
Experts from Seoul Economic Daily anticipate that over 3,500 corporations will enter the market, leading to an influx of "tens of trillions of won."
As an example, journalists cited internet giant Naver, which has a market capitalization of $18.4 billion (27 trillion won). Under the 5% limit, the company could theoretically acquire around 10,000 BTC.
The lifting of the ban could accelerate the launch of a national stablecoin and the approval of spot Bitcoin ETFs, a matter that has long been stalled.
Opening corporate access to the market may boost the development of local crypto companies, blockchain startups, and the DAT sector, as well as stimulate domestic investments in digital assets.
Until now, major South Korean corporations had to use foreign jurisdictions for such investments to circumvent domestic restrictions.
It is worth noting that in early January, the Supreme Court of South Korea recognized for the first time the legality of seizing Bitcoins from exchange wallets in criminal cases.