#SouthKoreaCryptoPolicy South Korea Accelerates Towards a Regulated and Innovative Crypto Ecosystem
South Korea is redefining the cryptocurrency landscape with a regulatory approach that balances innovation and investor protection.
📜 Key Legislation: Virtual Asset User Protection Act (VAUPA)
Effective July 19, 2024, the VAUPA represents the country's first comprehensive regulatory framework for digital assets. Its main provisions include:
• User Asset Protection: Requirement for virtual asset service providers (VASPs) to separate user funds from their own and to keep at least 80% in cold wallets.
• Market Manipulation Prevention: Prohibition of practices such as wash trading and insider trading, with a requirement to monitor and report suspicious activities.
• Supervision and Penalties: The Financial Services Commission (FSC) has the authority to inspect, fine, and suspend the operations of VASPs in case of violations.