South Korea Lifts 9-Year Ban on Cryptocurrency Investment! Here Are the Details

The dramatic change in South Korea’s long-standing strict restrictions on cryptocurrency markets has been a major step towards its newer, more recent reforms. The country ended a ban on institutional cryptocurrency investment that had been in place for nearly nine years, which allowed listed companies and professional investors to invest in crypto assets within certain limits.

It is seen as an important step towards South Korea’s goal of promoting the development of its digital asset ecosystem to be more institutionalized and controlled.

As per the new rule, “the equity capital of a person who is eligible for such investment will be at least 5% invested in cryptocurrency investments and professional investors can invest up to 45% of their equity funds.” market capitalization, meaning that these investments will only be made to crypto assets ranked in the top 20 by investment of .

Also transactions must be made through one of the five largest cryptocurrency exchanges in South Korea. This approach seeks to limit risk and make transactions more transparent and auditable.

According to officials, about 3,500 institutions and professional investors will be allowed to invest under this rule. These include publicly traded companies, financial institutions and professional investors who meet certain criteria for a group such as “prs. ” (i.e.

On the other hand, it is not yet clear whether dollar-denominated stablecoins will be included in this scope. The potential impacts, particularly on financial stability and capital movements, are said to be under review by regulatory bodies; consultations continue with the upcoming developments.

market analysts say this move could boost institutional crypto demand in South Korea and strengthen the country’s position in global digital asset markets. But a limited investment rate, as well as the selection of assets, also show that authorities are taking’very cautiously’ steps.

*This is not investment advice.

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