#SouthKoreaCryptoPolicy

South Korea significantly strengthens its regulation of the cryptocurrency market in 2025. Key innovations:

• Lifting the ban on institutional crypto trading from the third quarter of 2025, allowing banks, charitable organizations, and public companies to legally trade crypto assets.

• Implementation of strict KYC/AML rules, including mandatory verification through real bank accounts to prevent money laundering.

• New requirements for cryptocurrency exchanges and non-profit organizations regarding transparency, auditing, and restrictions on the sale of cryptocurrencies, as well as increased control over low-liquidity tokens.

• Support for stablecoins with stricter safety standards is planned in the second phase of regulation.

• The possibility of lifting the ban on spot Bitcoin ETFs is being considered, which could further stimulate the market.

• Support from the new administration with a more crypto-friendly position led by President Lee Jae-myung.