#SouthKoreaCryptoPolicy South Korea is considered a leading model in developing digital currency policies, as it always seeks to achieve a balance between encouraging innovation and protecting investors. In mid-2024, the parliament launched the 'Virtual Asset User Protection' law, which grants the Financial Services Commission enhanced supervisory powers over trading platforms, requiring service providers to keep a significant portion of customer assets in cold wallets and activate a 'real name' banking system.
With the onset of 2025, the commission issued a phased roadmap to open the market to institutional entities; in its first phase, it allowed universities, charitable organizations, and law enforcement agencies to create official accounts and liquidate digital donations, while the second phase will enable major companies and professional investors to trade digital currencies within controlled pilot programs to ensure transparency and curb manipulation.
Seoul also announced a new regulation for cross-border virtual asset exchanges, requiring companies to register their periodic transactions with the central bank. Although the digital gains tax has been postponed to 2028, these steps demonstrate the government's commitment to supporting the sector's growth while maintaining controls to protect its local market from potential risks.