#SouthKoreaCryptoPolicy South Korea has been actively developing and implementing a robust regulatory framework for cryptocurrencies and virtual assets. This policy aims to foster a safe and transparent market while supporting innovation in blockchain technology.

Below are some key aspects of South Korea's cryptocurrency policy:

1. Regulation of Virtual Asset Service Providers (VASP):

Licensing and registration: all VASPs (including exchanges, custodial wallet providers, and those involved in the sale, purchase, transfer, or management of virtual assets) must register with the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC) and obtain a license to operate.

Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF): VASPs are subject to strict obligations regarding AML/CTF. This includes enhanced due diligence (EDD) for transactions, reporting suspicious transactions (STR) to the KoFI's Financial Intelligence Unit (FIU), and compliance with the "Travel Rule" (which requires VASPs to share the information of the originator and the beneficiary in transactions exceeding a certain threshold).

Real-name accounts: A key regulation requires that cryptocurrency transactions be conducted through "real-name bank accounts" linked to cryptocurrency exchange platforms. This ensures that banks can verify the identity of the operators and monitor illicit activities. Minors and foreigners generally cannot open bank accounts to engage in cryptocurrency transactions.

Information Security Management System (ISMS): VASPs must obtain an ISMS certification from the Korea Internet & Security Agency (KISA).