#SouthKoreaCryptoPolicy

South Korea Crypto Policy Update (as of June 2025)

1. New Compliance Rules Effective June

KYC & real-name accounts are now mandatory: All crypto trading must go through real-name bank accounts tied to exchanges, aimed at strengthening anti-money-laundering (AML) measures

Exchanges sale limits: Exchanges can sell up to 10 % of planned crypto holdings per day, only among the top 20 tokens, and only to cover operational costs. This also bans exchanges from self‑trading on their own platforms

2. Non‑profits Can Now Sell Crypto

As of June 2025, nonprofits with ≥5 years of audited financial history and internal review committees may receive and immediately liquidate crypto donations—but only tokens listed on ≥3 major KRW exchanges. All proceeds must convert to KRW through real-name bank accounts

3. Stricter Listing Standards

To curb price manipulation, exchanges must delist “zombie” coins and memecoins lacking liquidity or clear utility. New tokens must meet minimum circulating supply and trade volume criteria, with temporary restrictions on market orders post‑listing

4. Institutional Access & Spot ETFs

The FSC aims to allow institutional investors—starting with professional firms and pension funds—to trade crypto later in 2025, possibly by Q3, lifting a ban on corporate trading since 2017

Both leading political parties (DPK and PPP) support spot crypto ETFs, and proposals include letting South Korea’s National Pension Service invest in crypto

5. Stablecoin Regulation & Won-Backed Coins

New stablecoin frameworks are being rolled out. Democratic Party’s Lee Jae‑myung (President, inaugurated June 4) promotes a won-backed stablecoin, with standardized approval processes and stablecoin laws expected under the upcoming Digital Asset Basic Act (DABA)

6. Cross‑Border Crypto Oversight

Preparations are underway to regulate cross-border crypto transactions in late 2025. Businesses must register and report monthly to the Bank of Korea to combat illicit forex flows .