#SouthKoreaCryptoPolicy

South Korea maintains a cautious and evolving regulatory stance towards cryptocurrencies, prioritizing investor protection and market stability.

Following high-profile incidents like the Terra-Luna crash, regulators significantly tightened oversight. Key policies include the mandatory use of real-name bank accounts for crypto trading (separating exchange and user funds), strict licensing requirements for exchanges (ISMS certification plus banking partnerships), and robust anti-money laundering (AML) protocols. While recognizing crypto's potential, authorities remain wary of speculative risks and fraud, leading to aggressive enforcement against market manipulation and illegal activities. A comprehensive framework, the Digital Asset Basic Act (DABA), is under development to provide clearer rules for issuance, trading, and investor safeguards. Taxation on crypto gains (currently deferred) is also planned, reflecting the government's aim to integrate the sector responsibly within its advanced digital economy.