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South Korea is weighing looser rules for corporate crypto exposure while tightening oversight of exchange ownership.
As of February 1, 2026, regulators were considering raising the corporate allocation ceiling to 10% of equity, from 5%. Officials announced the end of a nine-year corporate crypto investment ban on January 11.
The proposed South Korea corporate crypto cap would let listed companies and professional investment firms invest up to 10% of equity capital in crypto. Industry participants welcomed the policy shift. However, they questioned whether a fixed cap can work in volatile crypto markets.
Corporate crypto adviser Rich O said the change improves the prior framework. Still, he said a cap could restrict meaningful participation. He said a 5% ceiling can become impractical in volatile markets. In addition, he said integrated cash-and-crypto accounting could push firms over the limit.
“If the price of bitcoin rises significantly, compliance with the limit could force a sale,” Rich O said. He added that constant price fluctuation defines crypto markets. Rich O also said officials may fear listed firms adopting a similar playbook to Strategy, formerly MicroStrategy. He cited the reported 650,000 bitcoins as a reference point.
Also Read: South Korea FIU Targets Major Crypto Exchanges with New Penalties
Companies in South Korea are exploring digital assets for diversification and operational uses, according to market participants. Iris (Sungyoun) Park, co-founder of DELV and an attorney specialising in crypto, said corporate interest is broad. She said many firms see diversification as a resilience tool.
“Diversification is absolutely vital for the survival of companies these days,” Park said. She pointed to disparities in asset values inside South Korea. Park cited house prices and gold rising, while bitcoin is not. She framed that gap as a driver for portfolio diversification.
Meanwhile, Park said companies are also looking at stablecoins for cross-border settlement. She said firms want efficient tools for international trade and payments.
“There is a common understanding that crypto is a way to keep up to date with global business,” Park said. She did not say regulators will rush for further increases. Park linked regulatory pacing to work on spot bitcoin exchange-traded fund trading as part of an economic growth strategy.
Alongside the corporate cap debate, regulators are considering an ownership ceiling for crypto exchanges. The proposal would limit major shareholders’ stakes to 15% to 20%. The Financial Services Commission (FSC) said the cap could reduce conflicts of interest. The FSC also framed exchanges as a form of public infrastructure.
FSC Chairman Eog Weon Lee said that governance standards should align with exchanges’ public role. He made the remarks at a press conference on January 28.
“As crypto exchanges are now officially recognized as part of the financial system, we must create a governance structure that befits their status,” Lee said.
Rich O argued that the proposal focuses on control of future KRW stablecoin distribution. He said authorities want to dilute influence at large platforms like Upbit and Bithumb. The proposal could require Chi Hyung Song to sell a 10% portion of his reported 25% stake in Dunamu. Rich O estimated a 10% stake at about 3 trillion KRW.
In addition, the cap could hinder Naver’s plans to acquire Dunamu and take full control of its shares. The Digital Asset eXchange Alliance (DAXA) criticised the plan and warned it could hinder growth. Scholars at the National Assembly of South Korea also called the cap excessive and globally unprecedented.
Professor Yoon Kyung Kim said ownership diversity usually follows growth and fundraising. Professor Cheol Woo Moon said forced sales could trigger legal disputes and constitutional appeals.
