South Korea's Financial Services Commission (FSC) is drafting guidelines that would limit corporate and professional investor cryptocurrency holdings to 5% of equity capital annually. According to reports, the finalized rules are expected between January and February 2026, with corporate trading anticipated to begin later this year.
The proposed framework stipulates that corporations would only be permitted to invest in the top 20 cryptocurrencies by market capitalization. The inclusion of U.S. dollar-pegged stablecoins like Tether (USDT) remains under active discussion. The guidelines will also establish price limits and split trading rules designed to mitigate volatility as institutional participation increases.
Analysts note that the 5% cap is likely to concentrate liquidity in Bitcoin (BTC) and potentially Ethereum (ETH), with limited immediate impact on smaller altcoins. Most observers believe the limit may not pose a significant initial constraint, as companies are unlikely to exceed it in the early stages.
Concurrently, a separate and contentious legislative debate is unfolding regarding the structure of crypto exchanges. A proposal within the upcoming Digital Asset Basic Act seeks to limit major shareholder stakes in domestic cryptocurrency exchanges to a range between 15% and 20%. This ownership cap is facing fierce opposition from a coalition that includes members of the ruling Democratic Party, industry leaders, and academic experts.
Opponents within the ruling party argue that the focus should shift from structural ownership limits to robust rules against specific unfair trading practices, such as insider trading, market manipulation, and opaque conflict-of-interest scenarios. They caution that an ownership cap could stifle innovation by discouraging founders, deter investment, and weaken the global competitiveness of South Korean exchanges.
The Digital Asset Basic Act, expected to be tabled in the National Assembly later in 2025, aims to provide South Korea's first unified legal framework for digital assets. It will also formalize regulations for won-pegged stablecoins and introduce the nation's first spot crypto exchange-traded funds (ETFs), which are seen as pivotal for the local market structure. The legislation's final form, balancing these competing regulatory philosophies, will be closely watched as a potential global benchmark.
