#SouthKoreaCryptoPolicy
🇰🇷 1. Foundations & Consumer Protection
Virtual Asset User Protection Act (effective July 2024) legally defines digital assets and mandates oversight by the Financial Services Commission (FSC), setting penalties for unfair practices .
AML/KYC rules require real-name bank accounts, ISMS certification, and transaction monitoring—affecting all Virtual Asset Service Providers (VASPs) since 2021 .
Recent enhancements include stricter annual verification, source-of-funds checks, and tighter counterparty identity checks .
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🏛️ 2. For Nonprofits & Exchanges
As of June 1, 2025, non-profits can receive and immediately liquidate crypto donations—conditional on ≥5 years audited history, internal donation review, and sale via won-based exchanges .
Exchanges must adhere to new listing standards, limited token sales, and prevent market manipulation; only top‑20 tokens by market cap are allowed for service charges .
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🏦 3. Institutional Access & Stablecoins
Ban on institutional crypto investment (dating back ~2017) is set to end in Q3 2025—enabling pension funds, listed companies, and certified investors to participate .
Political consensus (both major parties) supports launching spot ETFs, allowing institutional crypto exposure, and easing bank-exchange partnerships .
Plans are in motion for a Korean-won stablecoin framework to curb capital flight and strengthen domestic crypto infrastructure .
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🌍 4. Tokenized Securities & Cross‑Border Regulations
A tokenized securities bill is under review to formalize issuance and trading of blockchain-based equity/bonds under existing regulators .
Starting H2 2025, cross-border crypto transactions will require operator registration and monthly Bank of Korea reporting to combat FX-related crimes (~₩11 trillion since 2020) .