South Korea allow listed companies make crypto purchase but block stablecoins wey pegged to US dollar
South Korea Financial Services Commission (FSC) dey prepare guideline we go allow listed companies and professional investors hold major cryptocurrencies but dem go exclude US‑pegged stablecoins (like USDT, USDC). The rules go limit corporate crypto exposure to the top 20 non‑stablecoin tokens by market cap (including BTC and ETH) and cap holdings at about 5% of company equity capital. Regulators dey cite the Foreign Exchange Transaction Act — wey no recognise stablecoins for external payments — and dem worry say stablecoin holdings fit enable cross‑border payments wey go bypass FX controls, increase money‑laundering and capital‑flight risks. Separate talks propose tighter rules for stablecoin issuance (minimum issuer capital ~5 billion KRW and majority bank ownership) and caps on major shareholders’ stakes in domestic crypto exchanges. This two‑phase Digital Asset Framework follow earlier retail protections and now aim to build market infrastructure and institutional access. Traders suppose dey watch draft rule language, the 5% corporate cap, exclusion of fiat‑pegged stablecoins, any won‑back stablecoin initiatives, and exchange ownership limits — all fit affect institutional flows, onshore liquidity, and demand for BTC/ETH.
Neutral
Di policy change open one controlled road for corporate crypto ownership, wey suppose make institutional demand for major non‑stablecoin tokens (especially BTC and ETH) increase because e go create on‑balance‑sheet buyers. Dat one good for baseline institutional interest. But dem explicitly exclude US‑pegged stablecoins, put 5% corporate equity cap, and fit set restrictive rules for stablecoin issuers and exchange ownership — all these dey materially limit scale and flexibility of flows. Short term, uncertainty about final draft language and implementation timing fit mute immediate price reactions. Medium to long term, the allowance fit support sustained demand and better on‑shore liquidity for large‑cap coins, but the caps and stablecoin exclusion dey constrain how big that effect go be. So net impact on BTC and ETH prices balanced: supportive fundamentals from added institutional access but tempered by strict limits and operational frictions.