🇰🇷 South Korea Tightens Crypto Regulations in 2025
South Korea is reinforcing its position as one of the most tightly regulated crypto markets in the world.
🔒 Key Updates:
The Virtual Asset User Protection Act takes full effect this July.
Exchanges must separate customer deposits from company assets and hold at least 80% of funds in cold wallets.
Strict penalties for unfair trading practices (e.g., wash trading, price manipulation) including prison time and fines up to 5x the illicit gains.
Ongoing discussions around implementing a crypto tax regime starting January 2026.
📊 Despite the tight rules, South Korea remains a top market for digital assets, with high adoption, strong investor interest, and growing institutional participation.
💬 Will these policies lead to a safer, more transparent crypto ecosystem—or push innovation offshore?