South Korea has made a significant change to its long-standing strict restrictions on cryptocurrency markets. The country ended a ban on institutional cryptocurrency investment that had been in place for nearly nine years, allowing listed companies and professional investors to invest in crypto assets within certain limits.
The decision is seen as a significant step towards South Korea’s goal of making its digital asset ecosystem more institutionalized and regulated.
According to the new regulation, eligible companies and professional investors will be able to allocate a maximum of 5% of their equity capital to cryptocurrency investments. These investments will be limited only to crypto assets ranked in the top 20 by market capitalization.
Additionally, transactions must be conducted through one of the five major cryptocurrency exchanges operating in South Korea. This approach aims to both limit risk and make transactions more transparent and auditable.
Officials state that approximately 3,500 institutions and professional investors will be eligible to invest under this regulation. This group reportedly includes publicly traded companies, financial institutions, and professional investors who meet specific criteria.
On the other hand, it is not yet clear whether dollar-denominated stablecoins will be included in this scope. Regulatory bodies are reportedly evaluating the potential impacts, particularly on financial stability and capital movements, and consultations are ongoing.
According to market experts, this decision could boost institutional crypto demand in South Korea and strengthen the country’s role in global digital asset markets. However, the limited investment rate and asset selection also reveal that authorities are maintaining a cautious stance.
*This is not investment advice.
