#SouthKoreaCryptoPolicy

South Korea is transforming its crypto landscape with investor protection at the core. The Virtual Asset User Protection Act, active since July 2024, mandates local exchanges store ≥80% of user funds in cold wallets, deposit cash with licensed banks, and maintain insurance or reserve funds against hacks . Starting early 2025, crypto profits above $35,900) will incur a 20% tax plus local levy . Institutions like charities, universities, and ~3,500 corporations can begin trading crypto via real‑name accounts by mid‑2025 under pilot programs . Soon, institutional investors may unlock stability and credibility, while tighter AML and cross‑border rules are rolled out . It’s a shift designed to protect users—and elevate South Korea in the global crypto arena.