South Korea plans to restrict listed firms’ cryptocurrency exposure to 5%.

South Korea Proposes 5% Cap on Corporate Crypto Investments

South Korea’s Financial Services Commission (FSC) is considering rules that would limit listed companies’ cryptocurrency holdings to 5% of their equity capital, signaling a major step in easing long-standing restrictions on institutional crypto trading.

According to Seoul Economic Daily, the FSC has drafted trading guidelines for listed companies and professional investors, with a final version expected as early as January or February. Corporate trading under the new rules could begin later this year.

Eligible firms would be allowed to invest up to 5% of equity capital annually in digital assets, limited to the top 20 cryptocurrencies by market value. Whether U.S. dollar stablecoins such as USDT will be included is still under discussion.

The cap is designed to limit balance-sheet risk and curb volatility as corporate participation grows. Additional safeguards, including split trading rules and price limits, are expected to manage market impact. Analysts anticipate flows will concentrate in bitcoin and ether, even if the top 20 tokens are permitted.

Market watchers are also looking ahead to the Digital Asset Basic Act, expected in the first quarter, which could provide regulatory clarity for stablecoins and spot crypto ETFs.