Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Reports suggest that South Korea will end its nine-year ban on corporate investments in cryptocurrencies. The country is implementing new guidelines that allow listed companies and professional investors to sell digital currencies.
According to Local media reports The “Cryptocurrency Trading Guidelines for Listed Companies” allow companies to trade cryptocurrencies. If possible, participating companies can invest up to 5% of the funds in the top 20 crypto groups by market capitalization on the five largest exchanges in South Korea.
The move is the third and final phase of the Financial Services Commission’s (FSC) plan to allow businesses to trade in cryptocurrency. The Authority launched a three-phase plan in February 2025.
The final phase is expected to see around 3,500 companies accessing the market, once the law comes into force.
Additionally, discussions are ongoing as to whether stable dollar currencies, such as Tether’s USDT, will be included in the permitted currency.
A nine-year ban ends – registering companies’ investments in cryptocurrencies
Financial regulators in South Korea banned companies and banks from trading cryptocurrencies due to government regulations enacted in 2017. At the time, the ban was put in place to reduce “excessive sentiment” and eliminate financial worries.
However, in response to the large increase in the global market, the Financial Services Authority lifted the ban. Because of the risk associated with large amounts of cryptocurrencies, the authorities gave a maximum annual share of 5% of the capital.
In addition, the government decided to impose a higher price limit on cryptocurrency trading platforms. These measures are intended to reduce market risk due to increased liquidity.
Market participants view the 5% investment cap as “excessive”
Experts in the financial sector have expressed concern that 5% of the money paid to investors of the cryptocurrency industry seems to be fixed. They also said that the United States, Japan, and the European Union do not ban companies with digital currencies.
“Investment restrictions, which do not exist in foreign countries, may harm the flow of money and prevent the emergence of private investment companies,” said one market observer.
Besides, with the long-term investment base, the establishment of the most successful stablecoins and bitcoin exchange-traded funds (ETFs) is expected to increase, industry experts explained.
Seoul has taken steps to become the world’s cryptocurrency hub, and has long spent 2025 using the currency at an unprecedented rate. For example, in September, the ruling Democratic Party launched a new group to prepare digital currency policies, in a move aimed at “stimulating the growth” of new products in this field.
A note South Korea has lifted the ban on corporate trading in cryptocurrencies, capping a 5% investment in listed companies. appeared for the first time Cryptonews Arabic.
