#SouthKoreaCryptoPolicy

South Korea is tightening its crypto rules while opening doors for institutional players. The Virtual Asset User Protection Act (effective July 19, 2024) mandates exchanges keep ≥80 % of users’ deposits in cold storage and strengthens AML oversight . In 2025, institutions enter the scene: charities, universities, and select government agencies will be allowed to sell crypto donations in H2, followed by a pilot enabling ~3,500 listed firms & professional investors to use real‑name accounts . Concurrently, regulators plan phase‑two legislation targeting trading rules, stablecoin regulation, and market transparency by late 2025 .

This captures the balance between investor protection and gradual institutional inclusion.