#SouthKoreaCryptoPolicy
🇰🇷 South Korea’s Crypto Policy Update
South Korea is implementing sweeping reforms this summer to balance innovation with investor protection:
Legal framework strengthened: The 2023 Virtual Asset User Protection Act expanded FSC authority, defined digital assets, and introduced penalties for unfair trading .
Enhanced AML/KYC & Travel Rule: From June, exchanges and nonprofits must follow strict identity checks, real‑name bank account linking, fund-source verification, and notify transfers ≥₩1 million under FATF guided Travel Rule .
Non‑profit & exchange sales allowed: Non‑profits with 5+ years audited history can sell donated crypto via won‑based accounts; exchanges can convert user fee payments in crypto under tight controls .
Institutional entry & ETF roadmap: FSC aims to open access to institutions—including public funds and charities—by Q3 2025, and legalize spot crypto ETFs and won‑pegged stablecoins, under President Lee’s reform agenda .
Bottom line: South Korea is evolving into a regulated yet innovation‑friendly hub—offering clarity, safety, and pathways for retail and institutional crypto participation.
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*Disclaimer: For informational purposes only; not financial advice.*