#我的2026第一条帖 Korea "Reopening"! After 9 years, East Asia's crypto landscape is set for a major shakeup?

A new draft regulation from the Korea Financial Services Commission (FSC) is causing a shift in capital flows within the Asian crypto market. The phenomenon known as "Kimchi Premium," unique to Korea's crypto scene, may soon need a new interpretation.
The FSC has just proposed a new guideline allowing listed companies and professional investment institutions to invest up to 5% of their equity capital in cryptocurrencies annually. This policy is expected to be finalized by early 2026, with companies potentially starting to act as early as this year. The market immediately recognized that this could mean around 3,500 Korean companies—from tech giants to financial institutions—are about to become new players in the crypto space.
Breaking the Ice After 9 Years
Rewind to 2017, when the Korean government completely banned corporate investments in cryptocurrencies. That year, retail investors flooded into the crypto market, prompting fears that corporate funds could fuel a bubble. A ban was issued, effectively blocking institutional participation. Nine years later, Korea's policy is making a 180-degree turn. Why now? The answer lies in Korea’s 2026 economic growth strategy. Crypt assets are officially incorporated into the national economic plan, and policymakers realize that if restrictions aren’t eased now, Korean tech companies will fall behind in the global race. Looking at neighboring countries: Japan has long allowed venture capital firms to hold crypto assets directly, and Hong Kong is actively promoting institutionalized crypto funds. When Korean giants like Naver and Kakao are expanding into Web3, but are constrained by domestic policies, it’s clear this isn’t the scenario Korea wants. The financial regulators finally understand that rather than letting capital flow overseas, it’s better to build a compliant domestic system.
The Power of 5%
This 5% cap may seem conservative, but its significance goes far beyond the number itself. Let’s do some quick math: Take Korea’s internet giant Naver, with equity capital of about 27 trillion KRW, roughly $184 billion. If it allocates the maximum 5%, that alone is enough to influence liquidity in mainstream crypto assets. This is not just a numbers game. When crypto assets can legally appear on corporate financial statements, and institutional funds can safely move through five major compliant exchanges, the fundamental logic of the entire market will change. Signs of this shift are already emerging. The FSC is studying the possibility of approving Bitcoin spot ETFs. Once corporate investment in crypto becomes routine, launching ETFs will be almost a natural progression.
East Asia’s New Battlefield
Globally, the regulatory landscape in 2025 shows interesting divergence. The US SEC continues to pressure the DeFi sector, and Europe’s regulatory framework is tightening. Korea’s open policy stands in stark contrast, becoming a landmark event in Asia. Could this trigger a chain reaction? As Korean corporate funds start flowing into crypto, will Southeast Asia and even broader economies accelerate their own institutional holding standards? Asia is becoming a new battleground for crypto. Japan’s proactive approach, Hong Kong’s enthusiasm, and Korea’s policy breakthrough seem to be forming a tacit consensus: rather than resisting, it’s better to guide and leverage this wave of technological change. This regional policy shift could reshape the flow of global crypto capital in the coming years.
The Era of Blue Chips
It’s important to note that Korea’s new regulation only allows investment in the top 20 cryptocurrencies by market cap. This means capital will be concentrated in mainstream assets like BTC and ETH. For altcoins, this could be bad news. As institutional funds become a major market force, their risk appetite will dominate capital flows. High market cap, high liquidity, and clear compliance will be favored, while the survival space for small-cap tokens may shrink further. This is not simply a matter of "bigger is better," but an inevitable stratification in the institutionalization process. For ordinary investors, this means reassessing their portfolios: those small coins that were once hotly promoted may find it even harder to attract incremental funding in the future.
Korea’s policy shift is like a stone thrown into a calm lake, with ripples already spreading. A FSC official cautiously stated that "the details are still being refined." But market expectations are already set: 3,500 companies, even if only some utilize this 5% quota, will bring unprecedented capital inflows.
"Will this wave of institutional capital entering Korea trigger the next price revaluation?" There’s no definitive answer, but one thing is certain: the market’s balance is shifting. The crypto world is moving from its wild west era toward institutional maturity. Korea’s reopening is a key milestone in this process, but not the end. When crypto assets start appearing on corporate financial reports, and institutional funds become a daily trading component, the market will look very different from what it is today. And we, as observers, are witnesses to this transformation.