#SouthKoreaCryptoPolicy

In 2024–2025, South Korea tightened regulation on cryptocurrencies by implementing an anti-money laundering framework and enhancing investor protection (Virtual Asset User Protection Act) with obligations such as storing 80% of user assets in cold wallets and insurance against breaches. The imposition of a 20% tax on profits above 2.5 million won has been postponed until 2027 to ease the burden on small investors. The lifting of the ban on institutional trading (charities, universities, and listed companies) was also approved starting in 2025 as part of a phased plan under the supervision of the FSC. These reforms reflect South Korea's effort to achieve a balance between innovation and market protection.