South Korea allows listed firms back into crypto markets under strict 5% treasury cap

South Korea is reopening corporate access to digital assets under a narrow, regulated pathway designed to limit balance‑sheet risk and curb market disruption. The Financial Services Commission’s decision lets roughly 3,500 organizations — public companies and registered professional investment firms — trade again, subject to an explicit 5% of annual equity capital allocation ceiling and an asset eligibility screen constrained to the 20 largest cryptocurrencies listed on five domestic exchanges.

Regulators are pairing the allowance with operational controls: exchanges must impose staggered execution, order‑size caps and custody requirements to reduce market‑impact events and operational failures. The measure is embedded in a broader legislative package that includes the forthcoming Digital Asset Basic Act, with final implementing rules expected by Jan–Feb 2026.

Complementary proposals being negotiated in that same package extend beyond corporate holdings. Lawmakers are moving exchanges from a short‑term notification regime to an authorization framework that would impose stricter suitability, governance and ownership checks — including a debated cap on single‑party or concentrated exchange ownership in the ~15–20% band. Parliamentarians are also coalescing around a minimum capital requirement for stablecoin issuers of roughly 5 billion won, intended to raise operational resilience.

The Bank of Korea has voiced reservations about won‑pegged stablecoins, warning they could complicate foreign‑exchange management and be used to circumvent capital‑flow controls; it has signaled a preference for bank‑led issuance or tightly limited issuer eligibility. Practical market responses are already visible: major operators are making governance moves and exploring ownership restructurings — Coinone, for example, has entered talks to divest a controlling stake — as exchanges prepare for potential forced or voluntary reshapes.

Non‑regulatory enforcement is increasing too: app‑store gatekeepers will demand local VASP registration — Google’s Play Store requires proof from Jan. 28, 2026 — creating an additional compliance hurdle for offshore platforms and raising friction for cross‑border services. Taken together, the corporate trading allowance and parallel exchange and stablecoin measures are designed to expand institutional participation while deliberately steering the industry toward better‑capitalized, better‑governed operators.

Expect a gradual liquidity uplift rather than an immediate capital flood; the combination of the 5% cap, the limited token list and prospective ownership and capital rules constrains near‑term corporate inflows. Policymakers appear to be pursuing stability and market‑integrity objectives first, leaving broader liberalization of eligible instruments and allocation limits to phased follow‑ups tied to observed operational resilience and market conduct.

• Number of eligible organizations: ~3,500
• Maximum corporate allocation: 5% of annual equity capital
• Eligible assets: Top 20 cryptocurrencies on five regulated domestic exchanges
• Proposed exchange ownership cap band: ~15–20% (under negotiation)
• Stablecoin capital floor under discussion: ~5 billion won
• App‑store VASP enforcement date: Jan 28, 2026
• Regulatory timeline: final guidelines and coordination with Digital Asset Basic Act by Jan–Feb 2026