#SouthKoreaCryptoPolicy

South Korea's crypto policy is focused on establishing a comprehensive regulatory framework for digital assets. Here are the key aspects

# Regulatory Framework

- The Financial Services Commission (FSC) is the primary regulatory body responsible for formulating policies and supervising Virtual Asset Service Providers (VASPs).

- The Korea Financial Intelligence Unit (KoFIU) receives Suspicious Transaction Reports (STRs) from financial institutions and analyzes them.

# Requirements for VASPs

- *Registration*: VASPs must register with the KoFIU before commencing business operations.

- *Anti-Money Laundering (AML)*: VASPs must comply with AML regulations, including:

- *Customer Due Diligence*: Conducting risk assessments and verifying customer identities.

- *Transaction Monitoring*: Monitoring transactions for suspicious activity.

- *Reporting*: Reporting suspicious transactions to the KoFIU.

- *Security Measures*: VASPs must implement robust security measures, including:

- *Information Security Management System (ISMS)*: Implementing an ISMS to protect customer assets.

- *Insurance*: Having an insurance plan or setting aside reserves to cover potential losses.

# Protection of Virtual Assets

- *Segregation of Assets*: VASPs must separate customer assets from their own assets.

- *Cold Wallet Storage*: VASPs must store a certain proportion of virtual assets in cold wallets.

# Unfair Trade Practices

- *Prohibited Activities*: VASPs are prohibited from engaging in unfair trade.