Below is the latest overview of South Korea's cryptocurrency (virtual asset) policy, focusing on recent developments, regulatory trends, and future directions:
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🏛️ Latest Regulatory Framework
1. Virtual Asset User Protection Act
South Korea will implement this law starting from July 2024, officially authorizing the Financial Services Commission (FSC) to regulate virtual asset service providers (VASPs), combat unfair trading practices, and enhance consumer protection measures.
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2. New Regulations Effective from June 2025
Starting June 1, 2025, the FSC will implement a series of adjustment policies, focusing on the following:
Non-Profit Organizations (NPOs) can legally accept and sell cryptocurrency donations, but must:
Have at least 5 years of audit history
Establish a donation review committee
Donated assets can only be mainstream coins listed on more than three domestic exchanges
Donations must be immediately converted to Korean won
Exchange Listing & Token Management
Limited to the top 20 market capitalization tokens
Strict control on 'zombie coins' and non-utility memecoins
Listing requires meeting liquidity and market cap thresholds, with initial market order restrictions
Trading Behavior Restrictions
Exchanges can only use tokens paid by users to cover operational costs, with a daily limit set below 10% of the planned total amount
Exchanges are prohibited from selling tokens from their platform to avoid conflicts of interest
Real-name Bank Account Coverage
NPOs and exchanges must connect to real-name Korean won bank accounts
The underlying support will expand the mechanism to professional investors and listed companies in the future
KYC / AML and Travel Rule Compliance
In accordance with FATF requirements: 1 million won (approximately 800 euros)