#SouthKoreaCrypto
Here’s a look at the relationship between South Korea and Bitcoin / crypto — what the regulatory environment is, how that affects Bitcoin, and some scenarios for how this could evolve. If you want, I can also talk specifically about how Korean investor behavior or local Bitcoin markets might influence price globally.
🇰🇷 How South Korea treats Bitcoin / Crypto — the regulatory & market picture
Legal & Regulatory Framework
In South Korea, cryptocurrency is legal and traded as an asset (not legal tender). (Lightspark)
Exchanges and Virtual Asset Service Providers (VASPs) must register with relevant authorities, follow KYC/AML rules, and operate real-name banking for users. (Freeman Law)
The government passed the Virtual Asset User Protection Act (VAUPA) in July 2024, which aims to protect investors, prevent unfair trading or manipulation, and increase transparency. (Lightspark)
Recent Changes
As of mid‐September 2025, crypto firms in South Korea are going to get “venture company” status (from September 16). That means they can access tax breaks, financing support, VC funding, etc., which had previously been restricted. (Cointelegraph)
South Korea has ordered exchanges to halt new crypto lending services until clearer guidelines are in place. This is a regulatory tightening in areas seen as risky (lending, leveraged products). (The Block)
The OECD’s Crypto-Asset Reporting Framework (CARF) is being adopted. Exchanges like Upbit and Bithumb will need to report foreign trades / cross-border transactions, and by 2027, Korean investors’ overseas crypto activity will be more strictly tracked. (Coinpedia Fintech News)
Market / Institutional Behavior
Crypto trading is popular in South Korea among retail investors. Many use local exchanges like Upbit, Bithumb, Coinone, etc. (Ledger)
There are concerns among regulators about speculation, market manipulation, scams, and crypto‐asset misuse. These concerns are driving stricter oversight. (Coinpedia Fintech News)
