#SouthKoreaCryptoPolicy Here is a brief overview of what the South Korea Crypto Policy is:
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🔹 1. Regulation and registration (since 2021)
VASP (crypto exchanges, wallets, etc.) must register with the Korea Financial Intelligence Unit, which is affiliated with the FSC.
Real name account system connected to a South Korean bank (system in place since 2018).
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🔹 2. Virtual Asset User Protection Act
Effective from July 19, 2024, this law imposes:
Separation of user assets and storage of ≥ 80% in cold wallets.
Requirement for reserves or insurance against hacking/liquidity.
Real-time monitoring, combating manipulation, penalties for fraudulent practices.
VASP must retain 15 years of transaction history.
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🔹 3. Taxation
Tax on gains: 20% above 2.5 million KRW (~$2,000). Implementation in 2025.
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🔹 4. Transparency and anti-money laundering
Implementation of the “travel rule”, application of FATF standards.
Creation of inter-agency units dedicated to crypto investigations and adoption of the LEI to identify entities.
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🔹 5. Opening to institutional investors (2025)
Gradual rollout of guidelines allowing universities, associations, and companies to invest in crypto, under strict conditions starting from Q2/Q3 2025.
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💡 In summary
The South Korean policy aims to firmly regulate the crypto sector:
Strict obligations for crypto platforms (registration, real accounts, AML)
Increased user protection (cold wallets, insurance, audits)
Tax transparency and combating financial crime
Controlled opening to the institutional world
---
🔹 1. Regulation and registration (since 2021)
VASP (crypto exchanges, wallets, etc.) must register with the Korea Financial Intelligence Unit, which is affiliated with the FSC.
Real name account system connected to a South Korean bank (system in place since 2018).
---
🔹 2. Virtual Asset User Protection Act
Effective from July 19, 2024, this law imposes:
Separation of user assets and storage of ≥ 80% in cold wallets.
Requirement for reserves or insurance against hacking/liquidity.
Real-time monitoring, combating manipulation, penalties for fraudulent practices.
VASP must retain 15 years of transaction history.
---
🔹 3. Taxation
Tax on gains: 20% above 2.5 million KRW (~$2,000). Implementation in 2025.
---
🔹 4. Transparency and anti-money laundering
Implementation of the “travel rule”, application of FATF standards.
Creation of inter-agency units dedicated to crypto investigations and adoption of the LEI to identify entities.
---
🔹 5. Opening to institutional investors (2025)
Gradual rollout of guidelines allowing universities, associations, and companies to invest in crypto, under strict conditions starting from Q2/Q3 2025.
---
💡 In summary
The South Korean policy aims to firmly regulate the crypto sector:
Strict obligations for crypto platforms (registration, real accounts, AML)
Increased user protection (cold wallets, insurance, audits)
Tax transparency and combating financial crime
Controlled opening to the institutional world