#SouthKoreaCryptoPolicy

South Korea is considering opening its crypto market to foreign traders from April 3, 2025. The move, initiated by the Financial Services Commission (FSC), is aimed at attracting foreign capital and addressing the “kimchi premium” — the price difference between cryptocurrencies.

Currently, foreign investors cannot trade on local exchanges due to the requirement to verify bank accounts in the name of South Korean residents.

Key aspects:

-Strengthening anti-money laundering (AML) controls: This is a key condition for foreign access. Platforms must comply with international AML standards.

-Attracting foreign capital: Opening the market will facilitate investment inflows and further growth of the stablecoin market.

-Addressing the “kimchi premium”: Foreign access could reduce the price difference between cryptocurrencies, which is a feature of the South Korean market.

-Tax deferral: The South Korean government has postponed the introduction of new taxes on cryptocurrencies until 2027, creating a more favorable environment for the market to develop.

This move could significantly change the landscape of South Korea’s cryptocurrency market, making it more integrated into the global financial system.