#SouthKoreaCryptoPolicy South Korea's new president, Lee Jae-myung, is set to boost the nation's crypto market with his left-leaning populist agenda. Key policies include ¹:

- *Accelerating Digital Asset Integration*: Enacting the Digital Asset Basic Act (DABA) to establish self-regulatory bodies, approve stablecoins, and provide clearer rules for crypto providers.

- *Spot Crypto ETFs*: Championing the approval of spot crypto ETFs to expand investment opportunities.

- *National Pension Service Investment*: Allowing the National Pension Service to invest in digital assets, potentially injecting more capital into the market.

- *Won-Based Stablecoin*: Proposing a won-based stablecoin, differing from the failed Terra project, to align with global regulatory trends.

*Current Crypto Regulations in South Korea*

- *Virtual Asset User Protection Act*: Enacted in July 2024, this law sets the stage for more comprehensive oversight in 2025.

- *Stricter Exchange Regulation*: Only licensed exchanges can operate, with stricter listing standards and guidelines for nonprofit crypto sales.

- *Taxation*: A 20% tax on virtual asset capital gains exceeding 2.5 million Korean won (approximately $1,800) will take effect.

- *Anti-Money Laundering (AML) and Know-Your-Customer (KYC)*: Cryptocurrency exchanges must implement robust AML and KYC practices to prevent illicit activities ² ³ ⁴.

*Future Outlook*

South Korea's crypto market is expected to become more transparent and secure with the government's continued efforts to regulate and monitor the industry. The second phase of cryptocurrency regulations, set to be unveiled in 2025, will further shape the market's landscape ².