South Korea's Policy on Digital Currencies (2025):
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🇰🇷 South Korea's Digital Currency Policy - 2025 Updates
South Korea is considered one of the most regulated countries in the digital currency market, and it is introducing strict and gradual amendments to develop the legal environment for this sector, balancing investor protection and opening the door for institutions.
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1. Strict laws for foreign transfers and anti-money laundering
Starting from the second half of 2025, individuals and companies conducting cross-border digital currency transfers will need to:
Register transactions with the Bank of Korea,
Submit monthly reports,
Objective: Combat money laundering and the illegal transfer of funds using digital currencies (suspicious transactions worth approximately 11 trillion won have been discovered since 2020).
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2. Virtual Asset Users Protection Act (VAUPA)
Came into effect in July 2024, requiring trading platforms to:
Store 80% of user funds in cold wallets (offline),
Purchase insurance against hacking and cyber-attacks,
Separate customer funds from company funds,
Prevent market manipulation and illegal insider trading.
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3. Gradual opening for institutions and companies
First half of 2025:
Allow universities, non-profit organizations, and government entities to sell digital assets.
