#SouthKoreaCryptoPolicy Cryptocurrency

The regulations governing cryptocurrency exchanges in South Korea are strict, including government registration and other procedures monitored by the Financial Supervisory Service (FSS) of South Korea.

The South Korean government imposed restrictions on the use of anonymous accounts in cryptocurrency trading in 2017 and prohibited local financial institutions from hosting Bitcoin futures contract transactions, raising concerns about an outright ban. The Financial Services Commission (FSC) also tightened reporting requirements for banks with accounts at cryptocurrency exchanges in 2018.

The new laws restrict cryptocurrency trading to "customer-named bank accounts," meaning that the trader (customer) must open an account in their name at the same bank where the cryptocurrency merchant operates to deposit or withdraw funds from their electronic wallet. According to standard anti-money laundering and counter-terrorism financing rules and organized reporting requirements for transactions, both the bank and the merchant must verify the identity of the trader.

In 2020, the South Korean government amended existing legislation, expanding the scope of mandatory anti-money laundering and counter-terrorism financing obligations to include all South Korean exchanges and requiring companies to obtain a license to operate from the unit.