South Korea Lifts Corporate Crypto Ban, Launches New Crypto Regulation in 2026

After nine years of strict restrictions, South Korea has finally reopened crypto trading to corporations. 

This decision marks a significant milestone in the new direction of Korea's crypto regulations in 2026 and marks a significant shift in the government's approach to digital assets.

This move will not only impact local companies, but also has the potential to change the dynamics of the Asian crypto market as a whole.

Key Takeaways

• South Korea officially ends its 9-year ban on corporate crypto.
• Around 3,500 organizations are now permitted to trade crypto with a 5% annual equity limit.
• Investments are limited to the 20 largest-cap cryptocurrencies on regulated exchanges.

South Korea Officially Allows Corporate Crypto to Return

This decision was announced by the Financial Services Commission (FSC), the main financial authority in South Korea.

The ban, which had been in place since 2017, has now been officially lifted, allowing public companies and professional investment entities to resume trading in crypto assets.

Approximately 3,500 organizations are eligible to participate in the crypto market under the new guidelines.

Read Also:South Korea Considers Delaying Crypto Taxes Until 2028

Investment Limits and Oversight Mechanisms

Despite opening access, the government still applies strict restrictions to maintain market stability.

Some key points of Korea's 2026 crypto regulations:

• Corporate investments are limited to a maximum of 5% of the company's total annual equity.
• Trading is only allowed on the 20 cryptos with the largest market capitalization.
• Transactions must be made through five major regulated crypto exchanges.

These restrictions aim to prevent excessive risk exposure on the company's balance sheet while keeping market volatility under control.

Part of the Digital Economy Strategy 2026

South Korea's corporate crypto policy is part of its broader 2026 economic growth strategy. The government is striving to establish the country as a digital and blockchain innovation hub in the Asian region.

Additional planned steps include:

• Clearer stablecoin regulation
• Paving the way for spot crypto ETFs
• Strengthening market supervision infrastructure

This approach demonstrates a shift in attitude from restriction to more structured institutional integration.

Read Also:South Korea Officially Implements First Crypto Law

Impact on Korea's Crypto Market Structure

The presence of institutions generally brings different characteristics compared to retail investors, including:

• Longer investment horizon
• More complex diversification strategies
• Professional risk management

With the influx of corporate funds, the Korean crypto market has the potential to experience:

• Increased liquidity
• Narrowing of bid-ask spreads
• Decrease in the dominance of short-term speculative trading

However, because there is a 5% equity cap, the initial impact is likely to be gradual, not an instant spike.

Regional and Global Implications

As one of the largest crypto markets in Asia, South Korea's decision could set a precedent for other countries that still restrict institutional participation.

If Korea's 2026 crypto regulations prove effective in maintaining stability while encouraging growth, this model could be adopted by other jurisdictions balancing innovation and investor protection.

The move could also increase South Korea's appeal to global blockchain companies seeking a clearer regulatory environment.

Read Also:K-Pop Investments: Taehyung, Crypto & AI on Sim Invest

Challenges That Still Lurk

While this policy is progressive, several challenges remain:

• Global crypto price volatility
• Systemic risk if exposure increases
• Coordination across supervisory agencies

The FSC emphasized that this policy will continue to be evaluated to ensure that financial system stability is maintained.

Read Also:South Korea's FSC Chairman Nominee Reluctant to Approve Spot Bitcoin ETF

Conclusion

South Korea's lifting of its ban on corporate crypto marks a major shift in the digital asset regulatory landscape in Asia. With measured restrictions and strict oversight, the government is attempting to balance innovation and stability.

Korea's 2026 crypto regulations have the potential to create a more mature, liquid, and institutionally integrated market in the next few years.

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FAQ

What is South Korea's corporate crypto policy?

This policy is a decision by the South Korean government to allow companies to trade crypto again after a 9-year ban.

Why was South Korea previously banned corporate crypto?

The ban was imposed in 2017 to limit excessive speculation and maintain financial market stability.

What are the main contents of Korea's 2026 crypto regulations?

Korea's 2026 crypto regulations limit corporate investments to a maximum of 5% of annual equity and only in the 20 largest cryptocurrencies through regulated exchanges.

Does this policy have a big impact on the market?

The impact is expected to be gradual, but could increase liquidity and institutional participation in the medium to long term.