South Korea's New Crypto Rules: Corporate Investment to Reshape Bitcoin Liquidity
A new South Korean law is set to reshape Bitcoin liquidity by allowing listed companies and registered professional investor corporations to invest corporate funds into crypto, reversing a ban that dates back to 2017, according to reports. The Financial Services Commission (FSC) shared draft guidelines with an industry-government task force on January 6, with the final version expected in January or February. The framework includes constraints on eligible buyers, limiting participation to around 3,500 corporates, and sets an investment cap of up to 5% of a company’s equity capital. Eligible assets would be limited to the top 20 coins by market cap, with stablecoin inclusion still under debate. Regulators aim to reduce liquidity shocks by implementing standards around order types. The development signals a shift from policy intent to concrete controls, potentially allowing corporate trading within the year.
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