Catenaa, Thursday, January 15, 2026-South Korea’s Financial Services Commission is reportedly planning to limit corporate and professional investor cryptocurrency holdings to 5% of equity capital annually, aiming to manage risks as institutional crypto trading expands.
Under the draft guidelines, corporations would be allowed to invest in the top 20 cryptocurrencies by market capitalization. The inclusion of U.S. dollar-pegged stablecoins like USDT remains under discussion. Finalized rules are expected between January and February, with trading by corporations anticipated later this year.
Analysts say the cap is likely to improve liquidity but will concentrate flows in Bitcoin and potentially Ethereum, with limited impact on smaller altcoins. The measures are part of South Korea’s ongoing effort to phase out previous restrictions on institutional crypto trading, following mid-2025 rules allowing non-profits and crypto exchanges to sell holdings.
The proposed framework will also set price limits and split trading rules to mitigate volatility as corporate participation grows. Observers note that the 5% limit may not pose a significant constraint, as most companies are unlikely to exceed it in the initial stages.
Market participants are also monitoring the country’s upcoming Digital Asset Basic Act, expected in the first quarter, which will formalize regulations for won-pegged stablecoins and introduce the nation’s first spot crypto ETFs. Stablecoin rules are seen as particularly influential for South Korea’s broader crypto ecosystem.
The FSC’s moves reflect a cautious approach to expanding institutional crypto access while safeguarding market stability amid growing corporate interest.
