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South Korea proposes 5% limit for listed firms’ crypto exposure

source-logo  coindesk.com 2 h
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South Korea’s Financial Services Commission is considering a rule that would cap corporate cryptocurrency investments at 5% of a company’s equity capital, according to local media reports, as the country moves toward easing its long-standing restrictions on institutional crypto trading.

Seoul Economic Daily reported that the FSC has drafted trading guidelines for listed companies and professional investors, with a final version expected as early as January or February. Actual corporate trading could begin later this year, the report said.

Under the proposal, eligible firms would be allowed to allocate up to 5% of equity capital per year to digital assets, limited to the top 20 cryptocurrencies by market value. Whether U.S. dollar stablecoins such as USDT would be included is still being discussed, the report added.

The guidelines are part of a broader effort to phase out what has effectively been a ban on institutional participation. South Korea began loosening the rules in mid-2025, allowing nonprofits and crypto exchanges to sell certain holdings. The FSC has previously signaled that listed firms and professional investors would be allowed to trade.

The proposed 5% limit appears designed to reduce balance-sheet risk and dampen volatility concerns if corporate participation ramps up.

Authorities are also expected to include trade execution guardrails, including split trading rules and price limits, to manage market impact as liquidity expands.

Analysts said flows would likely concentrate in bitcoin and, to a lesser extent, ether even if the investable universe includes the top 20 tokens, with limited spillover into smaller assets.

Market participants are also watching the Digital Asset Basic Act, expected in the first quarter, which could shape rules for stablecoins and spot crypto ETFs.

coindesk.com