#SouthKoreaCryptoPolicy Crypto Policy in South Korea

South Korea is one of the countries with strict crypto management policies but is gradually expanding towards professionalization. From 2021, all exchanges and services related to virtual assets must register with the Financial Intelligence Unit (FIU), comply with KYC regulations, and anti-money laundering (AML) laws. The new law, effective from July 2024, requires exchanges to separate user assets, store a minimum of 80% in cold storage, and prohibits market manipulation. Notably, phase two, expected to be implemented by the end of 2025, will further regulate stablecoins, security tokens (STO), and institutional trading. Unregistered foreign exchanges may have access blocked or face penalties. The South Korean government aims to create a transparent and secure crypto market while still promoting innovation within a strict legal framework.