South Korea proposes a 5% limit on crypto holdings for publicly traded firms.

South Korea Eyes 5% Cap on Corporate Crypto Holdings

South Korea’s Financial Services Commission (FSC) is considering a rule that would limit listed companies’ cryptocurrency investments to 5% of their equity capital, according to local media reports. The move is part of the country’s gradual effort to ease long-standing restrictions on institutional crypto trading.

Seoul Economic Daily reported that the FSC has drafted trading guidelines for listed companies and professional investors, with a final version expected as early as January or February. Corporate trading under the new rules could begin later this year.

Under the proposal, eligible firms could allocate up to 5% of equity capital annually to digital assets, restricted to the top 20 cryptocurrencies by market value. Discussions are ongoing about whether U.S. dollar stablecoins, such as USDT, would be included.

The 5% limit is intended to reduce balance-sheet risk and mitigate volatility if corporate participation rises. The FSC is also expected to introduce trade execution safeguards, including split trading and price limits, to manage market impact.

Analysts predict that flows will focus primarily on bitcoin and, to a lesser extent, ether, even if the investable universe includes 20 tokens. Market participants are also watching the Digital Asset Basic Act, expected in the first quarter, which could set rules for stablecoins and spot crypto ETFs

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