In 2023, South Korea strengthens its control over the cryptocurrency market, emphasizing transparency, security, and investor protection. But will this promote industry growth or, on the contrary, stifle it? Let's look at the key changes 🧐👇

📜 New Legislation

Starting July 2024, the Digital Asset User Protection Act comes into effect. It requires cryptocurrency exchanges to:

store at least 80% of assets in cold wallets ❄️

create insurance reserves to cover hacking attacks 🛡️

disclose conflicts of interest and fiscal information 🧾

💰 Tax Reform

A 20% tax on profits from crypto assets will be introduced (provided that the income exceeds 2,500,000 KRW ≈ $1,800). Expected launch in 2025. 💸

⚖️ Strict Oversight

The South Korean Financial Services Commission (FSC) will gain more powers to inspect tokens, halt trading of suspicious assets, and license projects. 🕵️‍♂️