South Korea prioritizes Bitcoin and cryptocurrency as national focus

South Korea has formally elevated its digital asset ecosystem to a national development priority, signaling a major pro-crypto policy shift that could broaden institutional participation and boost market liquidity. The government lifted a nine-year corporate crypto investment ban in January 2026, allowing listed companies and professional investors to allocate up to 5% of shareholder equity to leading cryptocurrencies. It also plans a Security Token Act by February 2027, spot Bitcoin and Ethereum ETFs, won-backed stablecoins, and blockchain innovation zones. A 22% crypto capital gains tax above roughly $1,665 is still scheduled for January 2027, though opposition parties may try to repeal it. The move strengthens South Korea’s position as one of the world’s most important crypto markets and could increase demand for BTCUSD through regulated investment channels.