#CryptoCharts101

South Korea adopts a strict regulatory policy towards cryptocurrencies. Since 2021, it has required virtual asset service providers to register and monitor anti-money laundering in cooperation with banks. In 2023, it enacted the Virtual Asset User Protection Act, which will take effect in July 2024, mandating that 80% of assets be stored in cold wallets and securing investors' funds.

Immediate oversight on trading is also applied, with stringent regulations on stablecoins, requiring a cash reserve ratio of 1:1. By the second half of 2025, Korea will begin regulating cross-border digital trading.

Overall, Korea balances investor protection and the prevention of financial crimes on one hand, and the support of innovation in the digital asset space on the other hand.

---

Source: Reuters, CoinDesk, Axios Crypto, Korean Financial Services Commission.