#SouthKoreaCryptoPolicy Historically, South Korean policy has been cautious, especially after the rise and fall of cryptocurrency prices in 2017. However, in recent years, the government has been working to establish a solid foundation for the industry. One of the most significant pieces of legislation has been the Special Financial Transactions Information Act, which came into effect in March 2021. This law requires cryptocurrency exchanges to comply with strict anti-money laundering (AML) and counter-terrorism financing (CFT) standards, including user identity verification and the implementation of transaction monitoring systems.

Additionally, the law requires exchanges to register with the Financial Intelligence Unit (FIU) and form partnerships with banks to operate real-name accounts, eliminating anonymous accounts. This has been a crucial step to legitimize the sector and combat illicit activities.