South Korean regulators clarify their stance on capital and disclosure in digital assets

The Financial Services Commission (FSC) of South Korea has clarified its true stance regarding corporate investment policies in the digital asset market. Contrary to reports in some media outlets, the regulatory body dismissed the existence of a final decision on a 3% capital limit for companies, leaving the door open for future regulatory definitions.

Clarifications on Corporate Capital Control

The FSC specified that no definitive standards have yet been adopted regarding investment limits or disclosure requirements for capital that corporations should meet. Reports about a rigid 3% rule do not reflect the actual ongoing discussions. This clarification aims to clear up uncertainty in the sector about what to expect from future regulations related to corporate capital in South Korea.

Collaborative Work within the Regulatory Framework

Negotiations are progressing through a working group composed of participants from both the public and private sectors. This forum seeks to establish clear criteria so that professional investment firms can participate in the virtual assets market in an orderly manner. The deliberative process indicates that regulators prioritize building a solid consensus before issuing final disclosure standards.

Implications for Institutional Investors

South Korea’s regulatory openness regarding institutional capital in digital assets is still under development. Although the FSC has not set final parameters, the public-private dialogue suggests an intention to facilitate corporate investment in an organized way. This approach contrasts with more restrictive jurisdictions and positions South Korean capital as potentially competitive in the virtual assets ecosystem as the regulatory framework is solidified.