South Korea proposes 5% limit for listed firms’ crypto exposure

South Korea's government has proposed new guidelines allowing listed companies to invest in cryptocurrencies with a cap of 5%. This proposal permits eligible firms to access the top 20 cryptocurrencies by market value, thus broadening the investment opportunities for businesses that were previously restricted in their crypto market participation. The intention behind this measure appears to be to ensure the safety of investments while also promoting access to the crypto asset sector. The implications for South Korea’s crypto market could be significant, potentially enhancing activity and providing new avenues for both investors and companies. The backdrop of this move includes the growing scale of the crypto market and the shifting trends in global investment, showing South Korea's desire to maintain competitiveness internationally. Should these regulations be implemented, companies will be required to fulfill reporting obligations to ensure the integrity of their investments. The proposal is currently in the discussion phase, and reactions from various stakeholders are being closely monitored.