#SouthKoreaCryptoPolicy

South Korea follows a precise regulatory policy towards digital currencies, combining strict oversight with innovative support. Since 2017, the government has banned initial coin offerings (ICOs), but it has reconsidered regulating them under certain conditions. The Financial Services Commission (FSC) was established to regulate the market and prevent money laundering and fraud, and it has imposed "know your customer" (KYC) and "anti-money laundering" (AML) regulations on trading platforms. In 2021, the laws were tightened, leading to the closure of many unlicensed exchanges. At the same time, the government encourages the development of blockchain technologies in financial and administrative sectors. South Korea aims to issue a pilot "digital won" and balances investor protection with innovation support, making it a key player in the future regulation of digital assets in Asia.