#SouthKoreaCryptoPolicy

South Korea is advancing its cryptocurrency regulations, balancing innovation with investor protection.

The Virtual Asset User Protection Act (VAUPA), effective July 2024, mandates Virtual Asset Service Providers (VASPs) to segregate user assets, store 80% in cold wallets, and maintain insurance against hacks.

The Financial Services Commission (FSC) oversees compliance, enforcing strict KYC/AML measures to curb money laundering. Recent moves include lifting the 2017 corporate crypto trading ban, starting with institutions like universities and non-profits trading Bitcoin and Ethereum, with broader corporate access planned for 2025. A proposed Digital Assets Committee aims to reform crypto laws, signaling a pro-crypto shift under President Lee. Taxation on crypto gains, initially set for 2025, is delayed to 2027, fostering market growth.