South Korean authorities seek 5% cap on corporate crypto investments: report

South Korea's Financial Services Commission (FSC) is reportedly planning to impose a 5% cap on the amount of equity capital that listed corporations and professional investors can allocate to cryptocurrency investments annually. This proposed guideline, expected to be finalized between January and February, would restrict investments to the top 20 cryptocurrencies by market capitalization, though the inclusion of stablecoins like USDT is still under discussion. The move aims to mitigate risks associated with large-scale corporate exposure to digital assets and will also include split trading rules and price limits. This initiative builds upon the FSC's efforts to phase out the previous de facto ban on institutional crypto trading, with actual corporate trading anticipated to begin this year. Analysts suggest the 5% cap is conservative but unlikely to be a major constraint initially, expecting liquidity flows to concentrate in Bitcoin and Ethereum. Furthermore, the industry is awaiting the Digital Asset Basic Act, expected in Q1, which will formalize regulations for won-pegged stablecoins and spot crypto ETFs.

(Source：The Block)