Bitcoin liquidity is about to get crunched by a new Korean law that legally excludes 99% of buyers

South Korea's Financial Services Commission (FSC) is finalizing guidelines expected in January or February that will lift a 2017 ban, allowing listed companies and registered professional investor corporations to invest corporate funds into crypto assets again. The framework imposes strict constraints: only about 3,500 qualifying firms can participate, with an annual investment cap set at 5% of their equity capital. Eligible assets will be limited to the top 20 coins by market cap, though stablecoin inclusion is still debated. Regulators are also implementing market structure guardrails, such as standards for order types, to mitigate sudden liquidity shocks from corporate entry. While the headline suggests exclusion, this controlled opening introduces a new type of institutional flow—corporate treasury desks—which typically trade slower and in larger chunks than retail, potentially thickening order books for majors like BTC and ETH. This move is part of South Korea's broader effort to modernize its capital markets and improve global access, but the final impact on Bitcoin liquidity will depend heavily on the fine print regarding which corporates qualify, stablecoin treatment, and execution rules.

(Source：CryptoSlate)