• New KYC rules target nonprofits and restrict donation handling to verified tokens.

  • Exchanges must delist low-liquidity tokens and follow strict operational limits.

  • Real-name accounts roll out in June, expanding to institutions later in 2025.

South Korea is set to implement tighter know-your-customer (KYC) measures for cryptocurrency-related transactions starting in June. These new rules, led by the Financial Services Commission (FSC), will apply to nonprofit organizations and virtual asset exchanges. The changes aim to strengthen transaction transparency, prevent misuse of crypto assets, and support the country's broader regulatory push in digital markets. The updated framework arrives as South Korea prepares to allow institutional entities to engage more freely in crypto dealings.

Stronger Controls for Nonprofit Crypto Transactions

Nonprofit organizations will now face enhanced verification standards before managing cryptocurrency donations. The FSC has mandated that only associations with at least five years of audited financial history can process virtual asset donations. This includes funds received through sponsorships and other supported channels.

To ensure compliance, organizations must establish Donation Review Committees. These internal panels will assess each donation's credibility and select how and when to convert assets into Korean won. Every crypto donation must pass through real-name bank accounts linked to verified exchanges, creating a direct oversight mechanism involving banks and platforms.

Furthermore, nonprofits can only handle tokens listed on at least three major domestic exchanges. Upon receiving any digital donation, immediate liquidation is required. This policy removes the possibility of tokens accumulating in organizational wallets, tightening security and compliance checks.

New Requirements for Digital Asset Exchanges

Crypto exchanges operating in South Korea will also come under new operational guidelines. Platforms are now restricted to using user-paid transaction fees solely for covering their running expenses. Daily liquidation limits will apply, typically capped at 10% of the planned selling amount.

Eligible tokens for sale must rank among the top 20 by market capitalization across five major won-based exchanges. Self-selling on their own platform is now prohibited, removing internal conflicts and aligning platforms with anti-market manipulation rules.

Exchanges are now barred from listing tokens without meeting minimum circulating supply conditions. Once listed, market orders will temporarily be limited to help reduce sharp price fluctuations. Tokens with unclear utility, including many memecoins and low-activity projects labeled as “zombie coins,” face mandatory reviews. Failure to meet liquidity or engagement thresholds will lead to delisting.The FSC confirmed that nonprofits and crypto exchanges will begin using real-name bank accounts starting in June. This initiative supports new KYC rules and prevents anonymity in crypto transactions. The program will expand later in 2025 to include listed firms and professional participants. Additionally, South Korean legislators are drafting proposals related to stablecoins and exchange-traded products linked to the won. These developments signal continuing efforts to align the digital asset sector with mainstream financial infrastructure.