South Korea Moves to Lift 9-Year Ban on Corporate Crypto

South Korea is preparing for a significant shift in its digital asset policy, allowing companies and institutional investors to hold cryptocurrencies on their balance sheets for the first time in nearly a decade.

Interestingly, the new policy shift comes as other Asia-Pacific jurisdictions are becoming more cautious about corporate exposure to crypto, highlighting Seoul’s contrasting approach.

The country’s pro-innovation administration introduced and designed the policy to open the market while maintaining careful regulatory control. It reflects South Korea’s broader ambition to strengthen its financial and technology sectors as part of its 2026 Economic Growth Strategy.

South Korea Ends 9-Year Institutional Freeze

For the past nine years, South Korea prohibited corporations and institutional investors from investing in cryptocurrencies. This left the market dominated by retail traders and, according to industry estimates, contributed to large capital outflows as firms sought crypto exposure overseas. Roughly $110 billion in digital assets reportedly left the country in 2025 alone.

Under the new framework, the Financial Services Commission (FSC) will allow listed companies and professional investors to allocate up to 5% of their equity capital to cryptocurrencies. Only the top 20 digital assets by market capitalization traded on South Korea’s five major exchanges will be eligible, ensuring exposure is limited to more established, liquid tokens such as bitcoin.

Moreover, this move enables companies to formally treat crypto as a treasury asset, similar to strategies adopted by firms like Strategy and Metaplanet abroad. While discussions about allowing stablecoins are ongoing, regulators have emphasized that the rollout will be gradual and tightly supervised to reduce systemic risk.

Hong Kong and Japan Take a More Cautious Path

In contrast, Hong Kong and Japan, once leaders in crypto regulation, are stepping back from encouraging corporate crypto treasuries. Rising market volatility and concerns over balance-sheet risk have prompted regulators in both jurisdictions to tighten oversight and discourage firms from holding prominent crypto positions.

Furthermore, this divergence signals a growing policy split within Asia. While Hong Kong and Japan prioritize financial stability and risk containment, South Korea is betting that controlled institutional participation will boost innovation, attract capital, and keep its digital economy competitive.

If successful, the shift could reposition South Korea as one of the most institution-friendly crypto markets in the region, marking a significant turning point after nearly a decade of restriction and potentially reshaping the country’s role in the global digital asset ecosystem.