Here’s a helpful infographic summarizing South
🇰🇷 South Korea Crypto Regulation Highlights
1. The Travel Rule✈️
Applies to VASPs for transactions ≥ KRW 1 million.
Requires sender/receiver names and wallet addresses; additional IDs upon request within 3 business days .
Mandatory from 25 March 2022 onward .
2. Exchange Registration & Security Measures🏦
All crypto exchanges must:
Register with the Korea Financial Intelligence Unit.
Operate with real-name bank accounts.
Hold ISMS certification for cybersecurity .
Under the Virtual Asset User Protection Act (July 2024):
80% of customer funds must be in cold storage.
Exchanges must back customer deposits with reserves or insurance and monitor for suspicious trading .
3. Institutional Access Rollout💒
H1 2025: Non-profits (charities, universities) allowed “real-name” exchange accounts and to sell crypto donations .
H2 2025: Pilot opens to corporate & professional investors; formal guidelines for institutions expected by Q3 with trading rules, custody, disclosure, and stablecoin frameworks .
4. Phase Two Regulatory Enhancements🗼
Second half of 2025: Expanded regulations to include:
Transparent listing practices.
Financial-grade disclosures.
Stablecoin reserve & redemption safeguards .
Tax reforms delaying crypto gains tax throttled to Jan 2025 or later .
5. Cross-Border Transaction Oversight♨️
From H2 2025, cross-border virtual asset trades will need pre-registration and monthly reporting to the Bank of Korea — a response to nearly ₩11 trillion in illicit FX flows since 2020 .
🔍 Why This Matters
Investor protection: Measures like the Travel Rule, fund segregation, and cold storage aim to prevent fraud, money laundering, and unsecure custodianship.
Gradual institutional integration: A cautious rollout from charities to full-scale institutional participation ensures controlled adoption with AML and risk oversight.
Global alignment: South Korea is harmonizing its regulation with major economies—emphasizing stablecoin standards, financial disclosures, and stricter listing rules.
Cross-border vigilance: Pre-registration and reporting for cross-border crypto flows mark a step toward combating illicit finance tiedt Fx frameworks. #SouthKoreaCryptoPolicy
