#SouthKoreaCryptoPolicy

South Korea has built a robust yet evolving crypto regulatory framework prioritizing investor protection, AML controls, and a cautious shift toward institutional involvement.

1. Regulatory backbone: Crypto exchanges must register with the Financial Services Commission and Korea Financial Intelligence Unit, maintain real-name bank accounts, enforce KYC/AML standards, and keep ≥80 % of deposits in cold wallets, with mandatory insurance and segregated custody .

2. Virtual Asset User Protection Act (VAUPA): Enacted July 2024, it strengthens oversight through 24/7 monitoring, audit rights for FSC and Bank of Korea, and strict penalties for unfair trading .

3. Crypto taxation: A 20 % gains tax applies only when profits exceed ₩2.5 million (~$1,800), but implementation has been repeatedly delayed from 2023 to at least 2028 .

4. Institutional access: From 2025, non-profits, universities, and ~3,500 corporations/professional investors will be allowed real-name crypto accounts in phases, with charity sales of crypto donations starting H2 2025 .

5. Upcoming framework expansion: A second crypto law targeting stablecoins, listing transparency, and disclosure is expected in late 2025 .