Speculation over 5% cap on corporates’ crypto holdings… regulator says “nothing has been finalized”

South Korea’s financial regulator pushed back against speculation that domestic corporations may be allowed to invest only up to 5% of their equity capital in cryptoassets.

The Financial Services Commission (FSC) said in an explanatory note on the 12th that it is discussing, through a task force (TF) of relevant agencies, the drafting of “guidelines on listed companies and other professional investment corporations’ participation in the cryptoasset market,” adding that “no key details—including investment limits and eligible investment targets for corporations—have been finalized at all.” The FSC has recently been holding discussions with a public-private TF to prepare crypto trading guidelines for listed companies and others.

Some have suggested the authorities may cap companies’ annual cryptoasset investments at 5% of equity capital. The industry says that if such a restriction is set, it could dampen corporate cryptoasset investment activity.

The United States and Japan have not set separate limits on corporate cryptoasset investment. The European Union (EU) and Singapore are also known to have allowed corporate cryptoasset investment relatively broadly.