SouthKoreaCryptoPolicy

#SouthKoreaCryptoPolicy updated with fresh insights and expert commentary:

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🇰🇷 What’s New: South Korea’s Crypto Policy Update

1. Major Policy Shift

South Korea is embracing a new era, preparing for institutional crypto trading, including spot ETFs, with a new pro-crypto government and refreshed regulations .

President Lee Jae‑myung—elected June 4, 2025—has promised comprehensive reforms: legalizing spot ETFs, launching a Kwon‑pegged stablecoin, permitting institutional investors (e.g., the national pension fund), and forming a Digital Asset Committee

2. June 1 Stricter KYC & AML Rules

New regulations effective June 1 enforce tight KYC/AML measures. Non‑profits and exchanges must now comply with:

Minimum 5 years of audited records and internal vetting committees (non‑profits);

Daily sale limits, real‑name banking ties, and robust AML checks;;

Delisting low‑circulation “zombie” or meme coins .

3. Virtual Asset User Protection Act

The VAUPA, taking effect in June–July 2025, strengthens user protections and legitimizes institutional crypto access by:

Exempting registered non‑profits and licensed exchanges from some trading restrictions;

Mandating secure cold‑storage (80% funds offline) and full AML/KYC compliance;

Delaying a 20% tax on crypto gains over ₩2.5 M until January 2027 .

4. Advancements for Security Token Offerings (STOs)

The National Assembly is fast‑tracking legislation to allow security token offerings, removing past bans and enabling asset‑backed token issuance .

5. Overview: Balanced Expansion

Aspect Detail

Institutional Access By Q3 2025, institutions, charities, and corporations gain trading access with proper real‑name accounts .

Regulatory Focus Focused on investor protection: stronger KYC/AML, delisting weak coins, and transactional transparency.

Future Steps Further stablecoin rules, cross‑border transaction reporting, possible removal of “one bank–one exchange” rule, and spot ETF rollout .

📸 Visual Highlight Breakdown

Image above: Official Binance Square announcement: “South Korea Tightens Crypto KYC Rules!” with June changes in AML/KYC .

🧭 What It Means for Binance Users

Regulatory Compliance Needed: Binance must ensure strict KYC/AML and full integration with Korean banks.

Institutional Potential: With reforms, Binance can cater to institutional clients, potentially increasing liquidity and product offerings.

Enhanced Risk Management: Expect delisting of low-quality tokens and tighter control over token circulation.

🔚 Final Take

South Korea is strategically transforming from a restricted to a regulated, institutional-ready crypto hub—maintaining investor protections while enabling major growth. Binance is part of this wave, working toward compliance and expansion in the Korean market.