Outline Emerges for Guidelines on Corporate Crypto Asset Investment…Possible Exclusion of Financial Firms Raised

Guidelines for corporate crypto asset trading—setting out rules on how companies can invest in virtual assets—are expected to take shape as early as next month.

According to the financial industry on the 4th, the Financial Services Commission (FSC) has entered a phase of reviewing the final draft of the corporate virtual-asset trading guidelines. With the FSC aiming to unveil the Digital Asset Basic Act later this month, observers say the guidelines are likely to be released in line with the subsequent schedule.

The guidelines are shaping up to include the scope of virtual assets that corporations may invest in, how virtual assets are to be held with custody providers before and after trading, and anti-money-laundering standards for corporate transactions. However, some say that among listed firms, companies with government ownership stakes, as well as financial companies such as banks and insurers, could be excluded from eligible virtual-asset trading counterparties in consideration of their asset-management characteristics.

Discussions over corporate investment limits are still ongoing. Financial authorities are concerned that large-scale corporate investment in virtual assets could weigh on financial soundness, but expert opinions remain divided on whether to specify concrete figures in the guidelines.

Some reports suggest a proposal is being reviewed to cap investment at around 5–10% of equity capital. Even within the financial authorities, however, it is said there is considerable caution over whether a uniform numerical cap would be appropriate.

The FSC is gathering industry and expert views through a public-private task force (TF) to coordinate key issues. Among TF members, there is a view that even if the guidelines do not include a clear investment cap, they are likely to incorporate an overall stance of warning against excessive expansion of investment.