#SouthKoreaCryptoPolicy 1. Investor‑Protection Framework (mid‑2024 launched)

The Virtual Asset User Protection Act came fully into force July 2024. It requires crypto exchanges to:

Use cold storage for at least 80 % of user funds.

Hold insurance or reserve funds for hacks/liquidity events.

Partner with licensed banks for fiat deposits.

Undergo Information Security Management System (ISMS) certification; ensure real‑name bank accounts and clean management teams .

A crypto crime task force was also established to combat money‑laundering and illicit use .