#SouthKoreaCryptoPolicy 1. ✅ Current legal framework – goal of "user protection"

• The Virtual Asset User Protection Act effective from July 19, 2024:

• Exchanges (VASPs) must store at least 80% of users' crypto in a "cold wallet," separate from their own assets .

• Requirement to purchase insurance or maintain financial reserves to handle situations of hacking or damage.

• Exchanges must sign contracts with licensed banks and separate user funds from their own funds .

• Prohibition on trading privacy coins (such as Monero, Zcash) .

• All VASPs (exchanges, wallets, etc.) must register with the Korea Financial Intelligence Unit (KFIU), ensuring compliance with KYC/AML, ISO certification, and real bank accounts in their name .