South Korea Opens Doors to Corporate Crypto as Hong Kong and Japan Tighten Rules
South Korea ended a nine-year ban on corporate crypto investment, allowing public firms to hold up to 5% of equity in top 20 assets, contrasting with tighter rules in Hong Kong and Japan.Summary
South Korea is reversing its long-standing restrictive stance on digital assets by ending a nine-year prohibition on corporate crypto investments. The Financial Services Commission (FSC) now permits public companies and professional investors to allocate up to 5% of their equity capital into the top 20 cryptocurrencies traded on major domestic exchanges, aligning with the country's 2026 Economic Growth Strategy.
This move contrasts sharply with regulatory trends in other major Asian markets. Hong Kong and Japan, once supportive of digital assets, are tightening oversight due to concerns over market volatility exposing risks associated with corporate crypto treasuries (DATs). Hong Kong's SFC is expanding oversight of advisory services and the stock exchange has rejected listings tied heavily to Bitcoin holdings, while the Insurance Authority imposed a 100% risk charge on insurers' crypto assets.
Japan's Financial Services Agency (FSA) plans to shift crypto oversight under the Financial Instruments and Exchange Act (FIEA) to treat crypto more like securities, imposing stricter disclosure and compliance rules. The Japan Exchange Group (JPX) also announced measures to curb "crypto hoarding" by listed firms, signaling a regional divergence in how corporate digital asset exposure is managed.
(Source：CCN)