#SouthKoreaCryptoPolicy

The cryptocurrency policy in South Korea focuses on protecting investors and preventing illegal activities. Since 2021, the Financial Transaction Reporting and Use Act requires virtual asset service providers (VASP) to register with the Financial Services Commission (FSC), apply strict KYC/AML rules, and store at least 80% of user assets in cold wallets. The Virtual Asset User Protection Act (VAUPA) of 2024 prohibits market manipulation and enhances oversight. A 20% tax on cryptocurrency profits over $2,100/year is being considered, but has not been implemented until the Basic Digital Asset Act is enacted.