South Korea Moves to Reopen Crypto Markets to Corporations After Nine-Year Ban

Regulatory approval for corporate crypto trading is set to return under new guidance finalized by the Financial Services Commission. The shift reverses a prohibition imposed in 2017, when authorities pushed institutions out of the market amid concerns over illicit flows and speculative excess.

This reopening is not a return to free-for-all trading. Instead, it reflects a broader recalibration of policy as South Korea aligns digital assets with its longer-term economic agenda heading into 2026.

Who gets access – and how much risk is allowed

Rather than opening the floodgates, regulators are taking a measured approach. Only listed companies and licensed professional investors will be eligible, and their crypto exposure will be tightly controlled.

Under the framework, companies will be limited to a small slice of balance-sheet exposure each year, with purchases restricted to the most liquid and established cryptocurrencies traded on Korea’s major exchanges. Execution rules will also change, with exchanges required to slow down large orders to reduce volatility and market shocks.

Roughly 3,500 corporate and professional entities are expected to qualify once the rules come into force.

A market shaped by exclusion

The long-running ban left South Korea with one of the most retail-heavy crypto markets in the world. Institutional capital largely vanished, while individual traders dominated activity at home – or moved funds offshore in search of broader opportunities.

That imbalance stands in sharp contrast to markets like the U.S., where institutional players account for the bulk of trading volume on platforms such as Coinbase. Korean policymakers now appear intent on narrowing that gap.

Stablecoins and ETFs enter the conversation

The regulatory reset does not stop with corporate trading. Officials are also weighing how dollar-linked stablecoins – including those issued by Tether – should fit into the new system, while simultaneously exploring the groundwork for a won-denominated stablecoin.

At the same time, momentum is building around domestic spot crypto ETFs, a move that could further normalize digital assets within Korea’s financial system.

Industry reaction: progress, but with friction

While the policy reversal has been welcomed, industry voices say the limits are too restrictive. The proposed exposure cap, in particular, has drawn criticism for being far more conservative than frameworks in the U.S., Japan, Hong Kong, or the EU.

Some market participants argue that strict limits could prevent the emergence of crypto-focused treasury strategies, pointing to firms like Metaplanet as examples of how corporate balance sheets can be used strategically in digital asset markets.

What happens next

Final guidelines are expected within weeks, with implementation tied to the Digital Asset Basic Act slated for introduction in early 2025. If legislative timelines hold, corporate trading desks could be active in crypto markets before the end of the year.

For South Korea, this is less about embracing speculation and more about regaining relevance. After years of isolation, the country is signaling that institutional crypto is no longer something to fear – but something to manage, integrate, and compete with globally.

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