#SouthKoreaCryptoPolicy South Korea is actively shaping its crypto policy to balance innovation with investor protection. The recently enacted Virtual Asset User Protection Act, effective July 2024, imposes stricter requirements on exchanges, including mandating cold wallet storage for 80% of user deposits and real-time monitoring for suspicious activities.

Recent updates include rules allowing non-profits to receive crypto donations under strict compliance, and new guidelines for exchanges selling tokens received as fees. The government aims to formalize institutional participation, with a roadmap to allow corporate trading of virtual assets in stages, starting with non-profits and later extending to listed companies and professional investors. While a proposed crypto tax has been delayed to 2027, the focus remains on robust AML/KYC measures and curbing unfair trading practices.