The air in Seoul hummed with a familiar, almost electric, buzz. Not just the city's usual vibrant energy, but a tangible anticipation among its millions of crypto investors. Young Jae, a 30-something software engineer, felt it acutely. He'd ridden the exhilarating highs and stomach-churning lows of the crypto market for years, and South Korea's evolving policy had always been a dominant force in his investment strategy.

Just a few months ago, the climate had been cautious. Strict "real-name bank account" rules, a de facto ban on institutional crypto investment, and an impending 20% capital gains tax on crypto had kept many on edge. Young Jae remembered the frustration when the government's Virtual Asset User Protection Act came into full effect in July 2024, bringing with it tougher penalties for market manipulation. It felt like walking a tightrope.

But then, a shift. The political winds had changed, bringing with them a wave of pro-crypto sentiment. Both presidential candidates, in a rare display of bipartisan agreement, had championed easing regulations. Young Jae had cheered when news broke that the proposed crypto tax would be delayed until 2027 – a much-needed reprieve.

Now, in June 2025, the landscape was transforming at a rapid pace. The Financial Services Commission (FSC) had begun to allow corporate entities to trade crypto in phases, starting with non-profits converting donated digital assets into cash. Institutional investment guidelines were promised by Q3, effectively lifting the prior ban and signaling a potential flood of new capital. The biggest news, though, was the strong political push for legalizing spot crypto ETFs and even a won-backed stablecoin.

Young Jae scrolled through the headlines on his phone. "South Korea's Crypto Industry Set to Benefit Regardless of Election," one article proclaimed, highlighting the broad support for loosening regulations. Another spoke of a new president vowing to support crypto growth, promising to complete the second phase of digital asset legislation and reduce restrictions in #SouthKoreaCryptoPolicy