#SouthKoreaCryptoPolicy "South Korea: From Regulatory Suppression to Institutional Revolution in the Crypto World!"
In recent years, South Korea has shifted from a strict policy towards digital currencies to a regulatory approach that encourages innovation and embraces institutions. Companies had been under a complete ban on trading virtual assets since 2017 as a measure against speculation and money laundering. However, the situation changed in 2025: the government allowed non-profit institutions such as charities and universities to sell and monetize digital donations starting in the first half of the year, as part of a pilot program involving around 3,500 professional institutions.
Furthermore, the Financial Services Commission (FSC) gradually lifted the ban, eventually including listed companies and professional investors by the second half of 2025. The aim is not only to encourage crypto adoption but also to elevate the level of regulatory coordination among financial entities and enhance anti-money laundering efforts through "real accounts" requirements and periodic reporting.
On the tax front, the imposition of a 20% tax on profits from digital assets has been postponed for the first time from 2025 to 2027 (or perhaps even until 2028), to give investors more time to adapt.
