#SouthKoreaCryptoPolicy

For a few months now, South Korea has been accelerating its regulation of the cryptocurrency sector, with a strategy that is both cautious and pro-innovation. Starting from June 1, 2025, a series of new guidelines will come into effect: NGOs and cryptocurrency exchanges will now be able to sell donations in crypto, provided they adhere to strict procedures (external audits, immediate conversion, supervision).

At the same time, the FSC is preparing a gradual lifting of the ban for institutions: philanthropic organizations, universities, and law enforcement will be able to start activities in the first half of 2025, followed by listed companies and professional investors during the year. Additionally, more detailed guidelines on institutional investment, including anti-money laundering protections, will be deployed in the third quarter of 2025.

South Korea is also considering regulating cross-border crypto transactions starting in the second half of 2025, by imposing registration and reporting obligations with the Bank of Korea, to combat foreign exchange market violations.

What this means:

• An evolving legal framework, combining innovation (access for institutions, crypto donations, clear guidelines) and security (AML, audits, reporting).

• A response to the global phenomenon, inspired by institutional adoption in the United States and the United Kingdom, with the expected emergence of products like crypto ETFs and Security Token Offerings (STOs).

• A strong intention to position South Korea as a regional leader while avoiding abuses: informed investors, enhanced supervision, and adherence to international expectations (FATF, FATF).

🔹 Conclusion: South Korea is moving towards a hybrid model: gradually integrating institutional and non-profit actors while strengthening oversight and securing the market.