#SouthKoreaCryptoPolicy

South Korea adopts an advanced policy towards digital currencies, blending openness with strict regulation. It enacted the Virtual Asset User Protection Act, which requires platforms to store 80% of user funds in cold wallets and prohibits unfair trading with penalties of up to life imprisonment. It has also started regulating NFTs, considering fungible tokens used for payment as virtual assets. The government plans to gradually introduce institutions and companies to the crypto market starting in 2025, with transparent regulations and close monitoring. Additionally, it launched a pilot project for the central bank digital currency (CBDC). These policies aim to achieve a balance between innovation and protection in the digital asset market.