🛡️ Regulation Status: Still Rolling Out
1. Institutional Access Opening — On Track
Phase 1 (since June 1, 2025): Non‑profits and virtual asset exchanges can now sell crypto under strict conditions: real‑name KRW accounts, tight KYC/AML, daily limits, and only top-20 tokens on ≥3 exchanges .
Phase 2 (Q3 2025): Institutional and professional investor participation is expected, including corporate accounts and pension fund access .
2. Spot ETF, Stablecoins & Digital Asset Basic Act (DABA)
New President Lee Jae‑myung supports spot crypto ETFs, a won-backed stablecoin, and the Digital Asset Basic Act — legal frameworks likely to advance through the National Assembly in the coming months .
3. KYC/AML & Compliance Controls
KYC checks now include verifying source/purpose of funds for non-profits and exchanges; banks also play a compliance role .
Ongoing crackdown on unregistered platforms: since March 25, 2025, Google Play has blocked unlicensed exchange apps in Korea .
4. Crypto Taxation Delay
A planned 20% capital gains tax (for profits > 2.5 million KRW) has been postponed — some sources suggest it may now only take effect by 2027 .
5. Cross‑Border Regulation Coming
Starting mid‑2025, businesses conducting international crypto transfers will need to register and report transactions monthly to the Bank of Korea .
📉 Market Sentiment & Implications
Stable and expected: These moves are largely extensions of rules already introduced—nothing radically new or surprising since June 1.
Institutional optimism ahead of Q3: Companies and pension funds are gearing up to enter the market, backed by political support.
Enforcement intensifying: Continued focus on compliance creates barriers for fly-by-night actors and foreign exchanges.
Tax clarity still pending: With the new capital gains tax delayed, retail traders may face more clarity later—though the schedule is shifting.
🔍 Summary Table
Policy Area Status Mid‑2025
Non-profit crypto sales ✅ Live under strict guidelines
Institutional entry 🚧 Phase 2 pending, expected Q3
Spot ETFs & DABA 🛠️ In legislative process, backed by the president
Stablecoin framework 🧭 Proposal underway
Capital gains tax ⏸️ Postponed, likely 2027
Cross-border rules 🚨 Implementation starting mid-2025
✅ Bottom Line:
No major shifts or surprises in mid‑2025 — but the execution of institutional access, spot ETF legalization, stablecoin framework, and cross-border regulation remains on a steady and politically supported path.
Disclaimer: This is for informational purposes only—not financial advice. Crypto investments carry significant risk. Always do your own research and consult professionals before acting.