South Korea Overhauls Crypto Regulations in Historic Shift
South Korea's approach to cryptocurrency regulation took a significant turn in 2026. After treating crypto as a retail-only risk for nearly a decade, the government decided to fold it into the country's core financial strategy. The Financial Services Commission (FSC) lifted a nine-year ban on corporate crypto trading, allowing listed companies and investment firms to invest up to 5% of their annual equity in the top 20 cryptocurrencies.
The Bithumb glitch in February 2026 triggered tough new exchange safety rules, including five-minute wallet checks across all exchanges. This led to a stricter regulatory framework, with the FSC mandating guidelines for corporate trading and the Financial Supervisory Service (FSS) enforcing exchange supervision and inspections.
Lawmakers also passed a law requiring cross-border crypto transfer firms to register with the government. The National Asset Basic Act (NABA), which recognizes crypto within national asset policy, was unveiled by officials in July 2026. However, the Digital Asset Basic Act (DABA) remains pending due to disagreements over won-backed stablecoin issuance rules.
The government's efforts aim to bring both institutions and the state itself into the market, rather than just policing retail traders. South Korea handles 15-20% of all global crypto trading volume, yet corporations were locked out until this year.