FSC rejects the rule of three for investments in digital assets

ConfusedWhale · 2026-01-31T09:05:59+00:00

The Financial Services Commission of South Korea dismissed rumors about a restrictive regulation that would limit investments in digital assets. It clarified that no final decisions have been made yet and that deliberations are ongoing to integrate investment firms into the market.

ConfusedWhale

2026-01-31 09:05:59

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Recently, South Korea’s Financial Services Commission (FSC) stepped in to deny rumors circulating in the market about a supposed restrictive regulation. Among the false claims attributed to the regulatory body was the so-called “three-rule,” which allegedly would limit corporate investments in digital assets to 3% of total funds. However, the FSC explicitly clarified that such decisions have not yet been finalized.

Clarifications on the Capital Disclosure Proposal

The regulatory agency specified that there is no final statement regarding investment limits or disclosure standards that may apply to the sector. According to reports from NS3.AI, the FSC emphasized that rumors about the immediate implementation of “the three-rule” are unfounded. This confusion likely arose from preliminary discussions that gained visibility in the sector without official context.

Ongoing Deliberations on Investment Institution Participation

What is currently happening is a process of deliberations within a joint public-private working group. In these discussions, conversations are underway focused on how to more actively integrate professional investment firms into South Korea’s virtual asset market. This ongoing dialogue aims to find balanced regulatory frameworks that protect investors without stifling innovation.

The FSC’s stance reflects a cautious approach: before establishing restrictive regulations like “the three-rule,” the authority prefers to advance inclusive discussions with market participants to design effective and consensus-driven regulations.

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