South Korea’s Regulatory Shift in Crypto Licensing

In South Korea, a search engine has emerged as a crypto gatekeeper by aligning with regulatory changes affecting corporate investments and access to virtual asset service providers.

This shift impacts the crypto market’s landscape, forcing compliance, potentially repatriating capital, and reshaping corporate investment strategies in top cryptocurrencies like Bitcoin and Ethereum.

South Korea announces regulatory changes to its cryptocurrency sector, including a new 5% investment cap on top cryptocurrencies and app store restrictions, aiming for implementation by 2026.

The policy aims to safeguard the crypto industry’s stability, potentially shifting market dynamics and affecting VASPs.

5% Cap on Corporate Crypto Investments by 2026

The South Korean Financial Services Commission enforces a 5% cap on corporate crypto investments. This involves top 20 cryptocurrencies traded on five regulated exchanges, aiming for enhanced financial stability.

Other changes include Google Play blocking unregistered VASPs unless registered with the FIU, which impacts app availability on Android devices in South Korea.

Unregistered Apps Face Google Play Restrictions

The shift may lead to a reallocation of Korean crypto capital to regulated domestic exchanges, potentially boosting these platforms’ growth. It creates a more controlled market landscape.

With Google Play’s move, unregistered crypto platforms face restrictions, prompting discussions among industry stakeholders to adapt or comply with FIU registration requirements. This adaptation will align with the upcoming Digital Asset Basic Act (DABA) set for 2026/2027, which aims to “provide a regulatory framework for VASPs and stablecoins, fostering a safer digital asset environment.”

Nine-Year Corporate Crypto Ban Comes to an End

These regulations end a nine-year corporate crypto ban, referencing South Korea’s previous Capital Markets Act applications, highlighting evolving regulatory approaches.

Analysts predict potential outcomes include increased institutional involvement in crypto markets, influenced by historical financial trends and recent regulatory actions shaping future industry behavior.