South Korea is one of the world leaders in the field of cryptocurrencies, combining technological innovations with strict regulation. Since 2021, the Special Financial Information Act has been in effect, establishing strict anti-money laundering (AML) requirements for cryptocurrency exchanges. In 2023, the Virtual Asset User Protection Act (VAUPA) was introduced, which will come into force in July 2024, aimed at increasing market transparency and protecting investors. VAUPA prohibits price manipulation and requires exchanges to monitor suspicious transactions.
In 2025, South Korea is preparing to lift the ban on institutional crypto investments, which will encourage the involvement of major players. The National Assembly is considering a bill on tokenized securities, which could integrate digital assets into the traditional financial system. The 20% tax on crypto profits has been postponed until 2028 due to infrastructure unpreparedness and concerns about capital outflow.
The country's crypto market is thriving: exchanges Upbit and Bithumb dominate, and 16 million users are actively trading. Political parties, including the PPP and DPK, support crypto initiatives, offering spot Bitcoin ETFs and stablecoins based on them. South Korea aims to become a regional crypto hub, influencing policy in Asia.
