South Korea Lifts 9-Year Corporate Crypto Ban

South Korea’s Financial Services Commission has finalized guidelines allowing listed companies and professional investors to trade cryptocurrencies. The decision ends a nine-year prohibition on corporate crypto investment in Asia’s fourth-largest economy.

🚨 BREAKING: SOUTH KOREA MOVES TO LIFT CORPORATE CRYPTO BAN, ALLOWING LISTED FIRMS TO INVEST UP TO 5% OF EQUITY IN TOP 20 CRYPTOCURRENCIES, ENDING THE 2017 RESTRICTION. pic.twitter.com/xcJvo8JzVz

— Coinwaft (@coinwaft) January 12, 2026

Approximately 3,500 entities will gain market access once the rules take effect. These include publicly listed firms and registered professional investment corporations across the country.

The new framework permits eligible corporations to invest up to 5% of their equity capital annually. Investment targets remain limited to the top-20 cryptocurrencies by market capitalization on Korea’s five major exchanges.

Regulators will require exchanges to implement staggered execution and order size limits. Whether dollar-pegged stablecoins such as Tether’s USDT qualify remains under discussion among authorities.

South Korea’s Retail-Dominated Market Faces Transformation

The guidelines mark the first regulatory green light for corporate crypto investment since 2017. Authorities originally banned institutional participation amid concerns about money laundering risks.

The prolonged prohibition has shaped Korea’s crypto market in distinct ways. Retail investors currently account for nearly 100% of trading activity on domestic exchanges.

Capital flight reached 76 trillion won, equivalent to $52 billion, as traders sought opportunities offshore. The contrast with mature markets remains stark.

At Coinbase, institutional trading comprised over 80% of volume during the first half of 2024. Korean markets have operated without comparable institutional participation for nearly a decade.

Industry participants expect the opening to accelerate momentum for a won-denominated stablecoin. Domestic spot Bitcoin ETFs also remain on the regulatory agenda.

While welcoming the policy shift, industry participants argue the 5% ceiling is excessively conservative. Critics cite that the US, Japan, Hong Kong, and the EU impose no comparable limits.

The restriction could prevent the emergence of Digital Asset Treasury companies. Firms like Japan’s Metaplanet build corporate value through strategic Bitcoin accumulation.

The move complements the government’s broader “2026 Economic Growth Strategy.” The plan includes stablecoin legislation and spot crypto ETF approvals announced last week.

The FSC plans to release final guidelines within January or February. Implementation timing will align with the Digital Asset Basic Act.

The legislation is scheduled for introduction in the first quarter of 2026. Corporate trading is expected to commence by year-end.

Russia Prepares Parallel Crypto Investment Framework

Meanwhile, Russia’s Central Bank has prepared its own comprehensive regulatory framework for cryptocurrency investment. The new rules establish distinct pathways for both qualified and unqualified investors.

Under the proposed concept, digital currencies and stablecoins gain recognition as currency values. Russians will buy and sell these assets through licensed intermediaries only.

LATEST: 🇷🇺 Russia is moving to regulate crypto.

The Bank of Russia proposes a framework allowing all investors to trade #Bitcoin and crypto, but with limits for non-qualified investors and a total ban on using it for domestic payments. 📜 pic.twitter.com/bgBOEyQ6UE

— Bitcoin.com News (@BitcoinNews) December 23, 2025

However, using cryptocurrencies for domestic payments remains prohibited under the framework. The Central Bank maintains that cryptocurrencies carry substantial risks for investors.

Unqualified investors will gain access to only the most liquid cryptocurrencies. Annual investment limits cap at 300,000 rubles per intermediary for these participants.

Qualified investors will enjoy broader market access under the new rules. They can purchase any cryptocurrencies without volume restrictions after completing the required testing.

Anonymous tokens remain off-limits for all investor categories under the proposed framework. Smart contracts that hide information about token transfers fall under this prohibition.

The testing requirement applies universally to ensure all participants understand inherent risks. Investors must acknowledge potential total loss of their funds before proceeding.

The Bank of Russia submitted these legislative proposals to the government for consideration. Both Asian and European regulatory frameworks now move toward structured institutional crypto access.