#SouthKoreaCryptoPolicy South Korea's crypto policy has become a significant election issue, with the liberal Democratic Party of Korea (DPK) pledging to allow spot Bitcoin ETFs and the ruling People Power Party (PPP) exploring regulatory frameworks for taxation. The country has a cautious approach to crypto, prioritizing customer protection and transparency. Key regulations include¹:

- *Digital Asset Basic Act (DABA)*: Balances blockchain development with investor protection, effective June 2024

- *Virtual Asset User Protection Act*: Curbs unfair trading practices, safeguards user deposits, and imposes strict penalties for offenders

- *Taxation*: No regulatory framework for taxing virtual assets, but capital gains tax applies to cryptocurrency sales

South Korea's crypto market is growing, with locals favoring high-risk, high-reward investments and altcoins over Bitcoin and Ethereum.