South Korea Ends 9-Year Ban, Allows Corporate Crypto Trading

WLFI-0,58%
  • Permitted investments are restricted only to the 20 cryptocurrencies with the biggest market capitalisation
  • These cryptocurrencies can be accessible for trading on South Korea’s five principal regulated crypto exchanges

South Korea has taken a big step by rebuilding corporations into its crypto market after scrapping a nine-year ban. The Financial Services Commission (FSC) has set up new protocols permitting listed bodies and professional companies to resume trading, successfully ending the 2017 ban

This initiative is a part of the 2026 Economic Growth Strategy of the government, aiming to change the nation into a premier digital hub by rolling out stablecoin laws and clearing the way for spot crypto exchange-traded funds (ETFs)

As per the new guidelines issued by the Financial Services Commission (FSC), around 3,500 organisations will get permission for crypto trading. This group incorporates publicly traded firms with duly registered professional investment companies

Corporate allotment to cryptocurrencies will be restricted to only 5% of a company’s yearly equity capital. This ceiling is to stop businesses from exposing their balance sheets to undue levels of risk. At the same time, officials look after the wider implications of institutional involvement on overall market stability

The Changing Korean Market

Permitted investments are restricted only to the 20 cryptocurrencies with the biggest market capitalisation. These cryptocurrencies can be accessible for trading on South Korea’s five principal regulated crypto exchanges.

The decision of South Korea to permit restricted corporate participation in the crypto market is a positive step toward greater institutional amalgamation. This alteration, with the next wider regulations, will possibly reshape the crypto landscape of the country over time

Permitting corporate participation will change the dynamics of Korea’s crypto market. Normally, institutional traders work with longer investment periods, varied strategies and professional risk management systems

The appearance may amplify liquidity, narrow bid-ask spreads and suppress the dominance of short-term retail trading activity. Although the 5% investment restricts the volume of funds that can be put into crypto from company treasuries in the short term. This leads the market impact to be slow instead of quick

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