South Korea’s Crypto Policy: A Game Changer in 2025
In 2025, South Korea is rolling out a major overhaul of its crypto regulations. The Virtual Asset User Protection Act requires exchanges to safeguard 80% of user funds in cold wallets, partner with licensed banks, and maintain insurance to shield against hacks and liquidity risks . A second regulatory phase, launching mid‑2025, will establish detailed rules for trading, custody, stablecoins, and tokenized securities .
Crucially, South Korea is phasing in institutional access to crypto. Non‑profits, universities, and later listed firms and professional investors will gain real‑name accounts and crypto trading rights . Furthermore, from H2‑2025, cross‑border crypto transactions will require registration and monthly reports to the Bank of Korea .
These measures aim to enhance transparency, support innovation, and align Korea with global crypto standards.