#SouthKoreaCryptoPolicy South Korea Crypto Policy Overview (2025)
South Korea is one of the most active and influential countries in the cryptocurrency space, with a regulatory environment that has evolved significantly over recent years to balance innovation, investor protection, and financial stability.
Key Aspects of South Korea’s Crypto Policy (as of 2025)
Regulatory Framework
South Korea regulates cryptocurrencies primarily under the Financial Services Commission (FSC).
The country enforces the Act on Reporting and Using Specified Financial Transaction Information, which includes anti-money laundering (AML) and counter-terrorism financing (CTF) measures.
Cryptocurrency exchanges must register with the FSC and comply with strict Know Your Customer (KYC) and AML requirements.
Exchange Licensing and Compliance
Since 2021, all crypto exchanges operating in South Korea must be registered and partner with banks to verify users’ real names.
Exchanges must meet cybersecurity standards and submit regular audits.
Non-compliant exchanges face shutdowns or penalties.
Taxation
As of 2025, South Korea imposes capital gains tax on cryptocurrency profits exceeding a certain threshold (e.g., 2.5 million KRW per year).
The government requires detailed reporting of crypto transactions for tax purposes.
Tax rates and rules may vary depending on the type of crypto activity (trading, mining, staking).
Investor Protection
The FSC has introduced guidelines to protect investors, including mandatory disclosure of risks by exchanges.
Marketing of crypto products is regulated to prevent misleading information.
There are ongoing discussions about introducing insurance or compensation schemes for users in case of exchange hacks.
Innovation and Blockchain Development
South Korea supports blockchain innovation through government grants and pilot projects.
Regulatory sandboxes allow startups to test new crypto-related products under supervision.
The government promotes the use of blockchain in finance, supply chains, and public services.