#SouthKoreaCryptoPolicy

**South Korea’s Crypto Policy Overview**

South Korea has strict but evolving crypto regulations to protect investors and prevent illegal activities. The **Financial Services Commission (FSC)** oversees crypto exchanges, requiring real-name bank accounts and KYC/AML compliance.

**Key Policies:**

- **Ban on anonymous trading** (since 2018).

- **Taxation:** 20% on crypto gains over $2,100 (delayed to 2025).

- **Strict ICO bans**, but exploring CBDCs and blockchain innovation.

- **Exchange licensing** under the **Travel Rule**, tracking large transactions.

**Recent Developments:**

- Plans to regulate **DeFi & NFTs**.

- Possible **spot Bitcoin ETF approvals** following global trends.

South Korea balances **investor protection** with fostering blockchain growth. Traders must comply with strict rules to avoid penalties.