#SouthKoreaCryptoPolicy: Regulation and Strategic Advancement in the Crypto Ecosystem

South Korea has become one of the most active and regulated markets in the world regarding cryptocurrencies. Through an evolutionary and progressive approach, it has sought to balance innovation with user protection.

In March 2020, laws were passed to legalize exchanges and establish measures against money laundering, requiring registration of real accounts, information in fiat currency, and transparency of operations.

In July 2024, the Virtual Asset User Protection Act came into effect, designed to strengthen user rights through asset segregation, reserve funds, custody in cold wallets, and inspections by the FSC.

Additionally, in 2024–2025, Korea plans to implement specific controls over cross-border transactions of crypto assets, with mandatory registration and monthly reports to the Bank of Korea, scheduled to take effect in the second half of 2025.

Another advancement is the debate to allow institutional Bitcoin ETFs, under discussion by the FSC, which expects to implement corporate accounts with real names and gradual authorization throughout 2025.

Why does it matter?

Protection and transparency: Current measures ensure that users' crypto assets are kept segregated and subject to audits, resulting in greater security.

Immediacy and control: Regulation of international flows will improve monitoring and prevent financial crimes.

Institutional adoption: The opening of corporate accounts and ETFs will allow companies and funds to formally enter the Korean crypto ecosystem.

Together, the strategy #SouthKoreaCryptoPolicy positions the country as a model for how to integrate innovation with robust regulation, fostering growth, trust, and greater integration of cryptocurrencies into its financial system.