#SouthKoreaCryptoPolicy 🇰🇷 South Korea’s Crypto Policy: A New Regulatory Era

South Korea is entering a transformative phase in its cryptocurrency regulation:

1. Tighter Compliance Ahead of Institutional Entry

Starting June 2025, the Financial Services Commission (FSC) will enforce rigorous KYC requirements, stricter token‑listing standards (excluding low‑liquidity zombie or memecoins), and daily volume caps on exchange sales to prepare for institutional participation  .

2. Non‑profits & Exchanges Gain Express Permission

Under new rules, charities with a minimum 5‑year audited record and internal oversight can accept crypto donations—provided funds are converted immediately. Similarly, exchanges may sell crypto received as fees, but only up to daily limits and only for operating funds—not for trading on their platforms .

3. Legalization of Spot Crypto ETFs & Institutional Involvement

Both major political parties support legalizing spot crypto ETFs. The newly elected President Lee Jae‑myung pledges to permit institutional investments—including by the National Pension Service—and advocate for a won‑backed stablecoin scheme to retain capital domestically .

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Why it matters

• These measures build a safer and more transparent environment for institutional investors.

• They promote market modernization while safeguarding against AML/CFT risks and excessive volatility.

• Legal recognition of spot ETFs and stablecoins may shift South Korea from compliance-focused to innovation-driven within the global crypto landscape.

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🔑 Takeaway: With the FSC’s compliance overhaul and strong bipartisan political support, South Korea is swiftly advancing toward becoming a regulated, institution-ready crypto hub—anchored in transparency and citizen protection.