New crypto regulations take effect in South Korea on June 1Rules apply to nonprofits and crypto exchangesAims to control circulation and enhance AML complianceTighter Oversight Coming to South Korea’s Crypto SectorSouth Korea is stepping up its oversight of the cryptocurrency market with a new set of rules from the country’s 4th Virtual Asset Committee. Starting June 1, nonprofits and crypto exchanges must comply with stricter guidelines focused on sales practices, anti-money laundering (AML) efforts, and circulation management.The move is part of South Korea’s ongoing push to bring transparency and order to its fast-growing digital asset market, which has seen both rapid innovation and rising concerns about market manipulation.New Guidelines Target Market ManipulationA key focus of the updated rules is preventing so-called “listing beams”—a term referring to sudden, unjustified price spikes that often follow new token listings. Exchanges will be required to implement stricter listing procedures and review processes, ensuring that new assets meet transparency and compliance standards.Nonprofit organizations involved in crypto projects will also face fresh scrutiny, especially regarding how they manage token circulation. The new guidelines aim to prevent excessive token supply that could distort markets or harm investors.LATEST: South Korea's 4th Virtual Asset Committee sets new rules for crypto sales by nonprofits and exchanges, effective June 1.Guidelines aim to prevent ‘listing beams,’ enforce circulation limits, and tighten AML controls. pic.twitter.com/ENiuRzFVLS— Cointelegraph (@Cointelegraph ) May 4, 2025Stronger AML Controls and Token LimitsSouth Korea is also tightening AML controls in line with global standards. The revised framework will require enhanced monitoring of transactions, wallet activities, and token flows. Crypto platforms will need to provide clearer disclosures and cooperate more closely with financial regulators.Circulation limits will be enforced to make sure that token distributions remain within acceptable ranges. These measures aim to reduce the risks of pump-and-dump schemes and untraceable transactions—two major concerns in the crypto space.With these regulations, South Korea is signaling that it wants to balance innovation with investor protection and legal compliance, setting an example for other nations grappling with similar issues in digital finance.Read Also:South Korea Unveils Stricter Crypto Rules for June 1XRP’s First Movers Won Big — Qubetics Is Becoming the Best Crypto to Buy This MonthBitcoin Could Hit $1M by 2029, Says BitwiseThe Coldest Crypto in Town – Analyst Sees $0.1 for Arctic Pablo Coin: Why It’s the One to Watch, Alongside Baby Doge and Goatseus MaximusCountdown to Gains: Best New Meme Coins for Significant Returns Include BTFD ($2K to $60K!), SPX6900, and ACTThe post South Korea Unveils Stricter Crypto Rules for June 1 appeared first on CoinoMedia.
