New Regulatory Developments in South Korea: Institutional Holdings of Crypto Assets to be Restricted, Spot ETF and Stablecoin Regulations Looming

[Crypto World] The actions taken by the Korea Financial Services Commission have attracted considerable attention. They plan to impose clear restrictions on the holdings of crypto assets by corporations and professional investors—setting the cap at 5% of equity, with investment scope strictly limited to projects ranked in the top 20 by market capitalization. What does this mean? Funds flowing into leading cryptocurrencies like Bitcoin and Ethereum may become more concentrated. According to the plan, the final rules issued in February this year will also introduce a volatility management mechanism. Behind this set of measures is South Korea’s attempt to establish a more cautious institutional participation framework. Meanwhile, the upcoming “Digital Asset Basic Act” is also in the works to regulate Korean won stablecoins, and the launch of spot cryptocurrency ETFs has been added to the schedule—this is a significant signal for investors who want to participate through official channels.