#SouthKoreaCryptoPolicy

🇰🇷 #SouthKoreaCryptoPolicy: What’s Changing & Why It Matters

South Korea is stepping up its crypto regulation game in 2025 — here’s a breakdown that matters:

🔍 1. Stronger Compliance & Investor Protection

The Virtual Asset User Protection Act (effective July 2024) mandates that exchanges store 80%+ of user assets in cold wallets, carry insurance, enforce KYC/AML, and maintain real‑name bank accounts .

💼 2. Institutional & Corporate Access

Starting in early 2025, select entities like non‑profits, universities, and listed firms are being allowed to trade crypto under careful guidelines . Complete FSC guidance is expected by Q3 2025 .

🌐 3. Cross‑Border Monitoring

From H2 2025, all businesses handling crypto cross-border must pre-register and file monthly reports with the Bank of Korea — a bid to tackle illicit FX activity (≈₩11 trillion since 2020) .

🧾 4. Tax Timing & Debate

A crypto gains tax (20% above ₩2.5M profit) has been delayed repeatedly — from 2025 to 2027 or even 2028 — while lawmakers fine-tune implementation logistics .

🔜 5. Upcoming Regulatory Round Two

The FSC’s second-phase framework (due mid‑2025) will address trading rules, stablecoin oversight, exchange listing standards, and possibly permit STOs and ICO review .

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🧠 Why it’s key:

📉 Protects retail investors and curbs fraud

🏛️ Opens doors to legit corporate and institutional crypto involvement

🌍 Aligns Korea with global regulatory standards (MiCA, FATF)

🛡️ Targets money laundering, illicit cross-border movements