#SouthKoreaCryptoPolicy South Korea has implemented strict regulations for cryptocurrency exchanges to improve transparency and reduce the risks of financial crimes. As of 2021, all virtual asset service providers (VASPs) must register with the Financial Intelligence Unit (FIU) and comply with anti-money laundering (AML) and know your customer (KYC) standards.

Key requirements include:

Using bank accounts with verified real names

Enhanced AML/KYC procedures and reporting of suspicious transactions

ISMS certification from the Korea Internet & Security Agency

Data sharing with authorities, including company and bank details

These rules apply to cryptocurrency exchanges, custodians, and wallet providers. Non-compliance can result in fines or imprisonment.

South Korea's regulatory model aligns with FATF standards and signals growing global efforts to create safer crypto environments. While compliance raises the barriers to entry, it also fosters trust and participation from institutions — a necessary step as the industry matures.