South Korea Allows Listed Firms to Invest in Crypto After 9 Years

South Korea has taken a major step toward opening its crypto market to big investors. The country has officially ended a nine year ban. That stopped companies from investing in cryptocurrencies. The change was confirmed by South Korea’s Financial Services Commission (FSC). This move allows listed companies and professional investors to buy crypto for the first time since 2017. For many in the market, this is a long-awaited shift.

Companies Can Now Buy Crypto Again

Under the new rules, listed companies and approved investment firms can invest in cryptocurrencies using up to 5% of their equity capital each year. Eligible entities must make investments only in the top 20 cryptocurrencies by market value. South Korea’s five major regulated exchanges will allow trading only on their platforms. These include platforms such as Upbit and Bithumb. The government expects around 3,500 companies and institutions to qualify under the new policy.

However, the government is still discussing whether it will include dollar-backed stablecoins like USDT. To reduce risk, the FSC will also set limits on order size and require that traders make trades in stages. They mean this to prevent sudden price swings and market shocks.

Why the Ban Was Put in Place

South Korea first banned corporate crypto investment in 2017. At that time, the market was facing strong price swings and growing fears of money laundering. As a result, only retail traders were allowed to trade crypto. Over time, this pushed a large amount of Korean money to overseas exchanges. Reports estimate that more than $50 billion flowed out of the country because companies could not trade at home. The government designed the new policy to bring that money back and build a stronger domestic crypto market.

Part of a Bigger Crypto Plan

This change is part of South Korea’s broader 2026 Economic Growth Strategy. The government plans to modernize its financial system and bring digital assets into the mainstream. Other plans include:

• New stablecoin rules
• Faster crypto legislation
• Possible approval of spot Bitcoin ETFs
• Tokenized treasury systems

The goal is to make South Korea a leader in digital finance across Asia.

Market Reaction and Industry Views

The crypto industry has welcomed the move. Specifically, many believe it will bring fresh capital into the market and reduce reliance on foreign exchanges. Furthermore, some industry leaders say Bitcoin will likely be the first choice for most companies. In addition, they expect Ethereum and a few other large assets to benefit. However, not everyone is fully happy.

Many experts say the 5% limit is too strict. In contrast, in countries like the US, Japan, and the EU, companies face no such limits. Consequently, critics argue that South Korea may miss the chance to build large crypto treasury firms like Metaplanet or the US-based MicroStrategy. Regulators also still do not allow banks to invest, which may slow down progress toward spot Bitcoin ETFs.

What Happens Next

The FSC is expected to release final guidelines in January or February. Corporate trading is likely to begin later this year. For now, South Korea has sent a clear message. The country is ready to move forward with crypto and the government finally allows companies to take part.