#SouthKoreaCryptoPolicy – Quick overview of South Korea's digital currency policy

📌 1. Mandatory registration & KYC

All exchanges and cryptocurrency service providers must register with FSC/KFIU and apply KYC, AML with 'real-name' bank accounts.

📌 2. User protection law (Virtual Asset User Protection Act)

Effective from July 2024, the law requires:

• Secure 80% of user assets with cold wallet

• Risk insurance (hack, losses)

• Strict controls against manipulation, price manipulation.

📌 3. Allowing institutional trading in 2025

• Q1-2/2025: non-profit organizations & universities are allowed to open real-name accounts and trade.

• From the second half of 2025: expansion to listed companies & professional investors (~3,500 institutions).

📌 4. New law phase two (H2 2025)

• A new legislative draft is in preparation, increasing transparency requirements, controlling token listings and stablecoins.

📌 5. Restrictions on unregistered foreign exchanges

The supervisory authority is under pressure to warn, and may block access to exchanges like KuCoin, BitMEX if they operate illegally in South Korea.

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🎯 Take‑away

• South Korea is building a safe, transparent crypto environment with KYC, cold wallets, and asset insurance.

• The expansion step for institutions is a significant boost, helping to increase liquidity & participation in the professional market.

• The phase two law will shape the future of stablecoins, listings, and user rights.