NewsAboutCrypto

Binance announced the delisting of 5 trading pairs, raising concerns among users and traders.
$MUBARAKAH Coin surged 92% in 24 hours, ahead of Eid al-Adha, showing rising interest in religious-themed cryptos.
Circle, the stablecoin issuer, soared 167% on its first day of trading on the New York Stock Exchange (NYSE).
#MarketPullback #TrumpTariffs #news #NewsAboutCrypto

South Korea, a vibrant hub for cryptocurrency adoption, is undergoing a significant transformation in its digital asset landscape. With a series of new regulations rolling out, the nation is solidifying its stance on investor protection, market stability, and the integration of digital assets into its financial system. These changes, impacting everything from asset custody to taxation and institutional participation, are set to redefine South Korea's role in the global crypto arena.
The July 2024 Mandate: Bolstering Security and Oversight
A cornerstone of South Korea's new regulatory framework is the Virtual Asset User Protection Act (VAUPA), which officially came into effect in July 2024. This landmark legislation introduces stringent requirements for Virtual Asset Service Providers (VASPs), primarily aimed at safeguarding user assets and preventing illicit activities.
A key provision of VAUPA mandates that at least 80% of user deposits must be held in cold storage. This offline, highly secure environment aims to shield assets from cyberattacks and hacking incidents, a significant concern in the volatile crypto space. Furthermore, user fiat deposits are now required to be held in licensed banks, effectively segregating them from exchange operational funds and adding an extra layer of protection.
Beyond custody, the VAUPA also imposes strict insurance and licensing requirements on crypto exchanges. These measures are designed to ensure that platforms have adequate financial backing to cover potential losses due to security breaches or operational failures, thereby enhancing overall market stability and investor confidence. Real-time monitoring systems are also required to detect and prevent market manipulation.
The January 2025 Tax Horizon: Awaiting Clarity
While the initial plan was to introduce a 20% tax on crypto gains in January 2025, there have been some developments. The implementation of a new law on taxing virtual asset incomes was reportedly delayed from January 1, 2025, to January 1, 2027. This postponement, reached through bipartisan consensus, comes amid ongoing economic uncertainty and political considerations. The exact details and thresholds for this tax, when it eventually comes into effect, will be crucial for investors to understand.
However, it's worth noting that even with the tax delay, South Korean authorities are actively working on robust systems for tax enforcement. A city in South Korea, for instance, is set to launch a "digital asset electronic seizure system" in March 2025 to confiscate crypto assets from individuals believed to be avoiding tax, underscoring the government's commitment to "tax justice."
Institutional Investors: A Phased Opening
A significant shift in South Korea's crypto policy is the gradual opening of the market to institutional investors. Historically, corporations faced de facto bans on crypto trading due to strict banking rules. However, the Financial Services Commission (FSC) has outlined a roadmap for corporate participation, starting with non-profit organizations.
As of June 1, 2025, non-profit organizations, including charities and universities, are permitted to sell crypto holdings through local exchanges. This marks the first institutional crypto sale in the country, with organizations like World Vision successfully liquidating donated crypto assets. This initial phase is expected to be followed by allowing qualified publicly traded companies and professional investors to access the digital asset market in Q3 2025.
This phased approach, coupled with political promises from leading presidential candidates to legalize spot crypto ETFs and allow the national pension fund to invest in cryptocurrencies, signals a growing acceptance and integration of digital assets into the mainstream financial system.
Global Transfers Under the Radar: Enhancing Oversight
South Korea is also tightening its grip on global crypto transfers. Proposed amendments to the Foreign Exchange Transactions Act aim to establish new obligations and reporting requirements for crypto exchanges dealing with cross-border crypto transactions. This is part of a broader effort to enhance oversight and prevent capital outflows, especially given that stablecoin flows have accounted for a significant portion of South Korea's overseas crypto transfers.
These measures align with international efforts to combat money laundering and illicit financial activities in the crypto space, indicating South Korea's commitment to adhering to global regulatory standards.
The Road Ahead
South Korea's evolving crypto policy reflects a delicate balance between fostering innovation and ensuring investor protection and financial stability. The coming months and years will be critical in observing how these new regulations are implemented and how they shape the trajectory of the nation's digital asset market. With a clear focus on robust security, a delayed but inevitable tax framework, and a phased opening to institutional participation, South Korea is positioning itself to be a well-regulated yet dynamic player in the global cryptocurrency landscape.
#SouthKoreaCrypto #NewsAboutCrypto