#SouthKoreaCryptoPolicy

🇰🇷 **#SouthKoreaCryptoPolicy: Strengthening Regulations for a Safer Crypto Ecosystem**

South Korea is advancing its cryptocurrency regulatory framework to enhance investor protection and combat illicit activities. Key developments include:

* **Virtual Asset User Protection Act**: Effective from July 2024, this law mandates exchanges to store at least 80% of user deposits in cold wallets, entrust cash deposits to licensed banks, and maintain reserves equivalent to customer deposits.

* **Cross-Border Transaction Oversight**: Starting in the second half of 2025, businesses involved in cross-border virtual asset transactions must register with authorities and report monthly to the Bank of Korea. ([reuters.com][1])

* **Enhanced Exchange Authority**: Exchanges are empowered to freeze assets for tax evasion and other illegal activities. ([binance.com][2])

* **Binance's Strategic Move**: In 2023, Binance re-entered the South Korean market by acquiring a majority stake in GOPAX, aiming to support the local crypto ecosystem. ([coindesk.com][3])

These measures reflect South Korea's commitment to integrating cryptocurrency into the financial system while ensuring consumer protection and regulatory compliance.

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[1]: https://www.reuters.com/markets/asia/south-korea-regulate-cross-border-trade-virtual-assets-2024-10-25/?utm_source=chatgpt.com "South Korea to regulate cross-border trade of virtual assets"

[2]: https://www.binance.com/en/square/post/11-18-2024-south-korea-strengthens-crypto-regulations-with-new-measures-16403239452970?utm_source=chatgpt.com "South Korea Strengthens Crypto Regulations With New Measures | Binance News on Binance Square"

[3]: https://www.coindesk.com/business/2023/02/03/binance-re-enters-south-korea-by-buying-majority-stake-in-crypto-exchange-gopax-bloomberg?utm_source=chatgpt.com "Binance Re-Enters South Korea by Buying Majority Stake in Crypto Exchange GOPAX"