#SouthKoreaCryptoPolicy

South Korea is adopting a more favorable approach towards cryptocurrencies, driven by its large digital asset market. Here are some key points about cryptocurrency policy in South Korea ¹ ²:

- *Regulations*: The South Korean government has implemented strict regulations to protect investors and prevent financial crimes. The Virtual Asset User Protection Act, in effect since July 2024, imposes stringent requirements on cryptocurrency exchanges, including the segregation of user deposits and measures to address liabilities after hacks or system failures.

- *Anonymous accounts*: The anonymous buying and selling of cryptocurrencies has been prohibited in the country. Cryptocurrency accounts must match the names of the associated bank accounts to prevent money laundering and other crimes.

- *Taxes*: The government has postponed the capital gains tax on cryptocurrencies until 2027, which has added stability to the market.

- *Pro-crypto policy*: Major candidates in South Korea's presidential elections have adopted pro-cryptocurrency policies, promising to ease regulations and expand access to digital assets. Some candidates have even proposed legalizing spot crypto exchange-traded funds and allowing the national pension fund to invest in cryptocurrencies.

- *Cryptocurrency market*: South Korea has one of the most active cryptocurrency markets in the world, with over 18 million people interested in digital assets. The trading volume on national cryptocurrency exchanges sometimes exceeds that of the Kospi and Kosdaq stock indices.

Overall, South Korea is working to create a more favorable environment for cryptocurrencies, focusing on investor protection and market regulation.