#SouthKoreaCryptoPolicy - South Korea Leads the Way in Crypto Regulation

South Korea is establishing itself as a global benchmark in policies for digital assets. Starting in the second half of 2025, mandatory registration of companies conducting international transactions with cryptocurrencies will be required by the Bank of Korea, along with monthly reports — a measure adopted to combat currency-related crimes, which have already totaled around $8 billion since 2020  .

In addition, the country continues to advance its regulatory framework:

• The Virtual Asset User Protection Act of 2023 sets strict rules for exchanges: asset segregation, cold storage, and periodic audits .

• The Financial Services Commission (FSC) plans to allow institutional trading (such as NGOs and companies) in the first half of 2025, and expand it to large investors in the third quarter .

• There are also efforts to increase transparency: issuing entities of stablecoins and crypto assets must comply with requirements comparable to those of traditional financial institutions.

This balanced approach — legal security, crime fighting, and openness to institutional innovation — indicates that South Korea aims to attract global capital, stimulate the volume of operations, and strengthen investor confidence.

If you operate in the region or plan to expand your investments, keep an eye on these effects: greater participation of institutional players tends to increase liquidity, product diversity, and market stability.