🇰🇷 South Korea Crypto Policy 2025: What You Need to Know
🔍 Major Policy Moves
📌 Focus Area 🗓 Timeline 🔑 Key Impacts
Cross‑border regulation H2 2025 Exchanges handling international crypto transfers must register & report monthly to the Bank of Korea—part of a crackdown on ₩11 trillion in FX-related crimes since 2020 .
Institutional access rollout H1–H2 2025 Phased easing allows non‑profits, law enforcement, universities to trade crypto (H1), followed by 3,500 corporate & professional investors (H2), with robust AML and custody guidelines .
New regulatory framework (“Crypto Law 2.0”) H2 2025 FSC will introduce a second-tier framework mandating enhanced exchange transparency, stablecoin oversight, aligned accounts with the traditional finance sector .
Crypto taxation rules FY 2025 → delayed Profits over ₩50 million/year taxed at 20%, capital gains rules aligned nationwide; cross-border reports commence in H2 2025 .
User‑safety law enforcement Ongoing since July 2024 Virtual Asset User Protection Act enforces 80% cold‑storage mandates, hack insurance, anti‑manipulation oversight, and new incident‑reporting rules .
Foreign exchange compliance Q4 2024–2025 Crackdowns on unregistered foreign exchanges (e.g. BitMEX, KuCoin) with potential access blocks and sanctions .
📈 Strategic Takeaways & Breakpoints
Bullish: Institutional Shift!
Corporate/non‑profit market entry signals sustained liquidity growth. Watch for H2 2025 guideline releases—a bullish sign for platforms offering custody and compliance services.
Neutral: Tax Trigger at ₩50 M
The 20% capital gains tax over ₩50 million kicks in Jan 1 2025. Monitor adoption trends—if many traders stay under threshold, adoption may decelerate.
Bearish: Cross‑border Hassles
Heavy reporting duties and foreign exchange compliance could hinder new exchange launches and international fundraising unless well-prepared.
Reg‐Line Signals: Crypto Law 2.0 & Safe‑Trade Ops
Enforcement of transparency and stablecoin oversight can weed out bad actors. A second-tier law passing in H2 2025 may catalyze a wave of exchange upgrades or exit.
📌 What to Monitor in Coming Months
1. June–July 2025 – Launch of Crypto Law 2.0 draft.
2. Q3 2025 – FSC issues institutional investor guidelines.
3. Q2 2025 – Monthly cross-border reporting begins.
4. January 2025 – Tax rule takes effect; observe transaction volume trends.
5. Mid‑2025 onward – Sanctions rollout on foreign exchanges.
Disclaimer: This is not financial advice. Markets and regulations evolve—perform your own due diligence.