#SouthKoreaCryptoPolicy

South Korea's crypto policy is focused on ensuring user protection, transaction transparency, and market discipline. Here are some key aspects ¹ ²:

- *Regulatory Framework*: The Financial Services Commission (FSC) is the primary regulatory body, responsible for formulating policies and supervising Virtual Asset Service Providers (VASPs).

- *VASPs*: Entities providing services related to virtual assets, including buying, selling, exchanging, and storing cryptocurrencies, must comply with regulations.

- *Anti-Money Laundering (AML)*: VASPs must implement AML policies, including customer due diligence, transaction monitoring, and reporting suspicious activities.

- *Travel Rule*: VASPs must share information about the originator and beneficiary of transactions exceeding a certain threshold.

- *User Protection*: VASPs must separate customers' assets from their own, keep records of transactions, and have insurance plans or reserves to protect against hacking and network crashes.

- *Unfair Trade Practices*: VASPs are prohibited from insider trading, market manipulation, and fraudulent activities.

- *Taxation*: Cryptocurrency gains are subject to capital gains tax, with a tax rate of 20% for individuals and 22% for corporations. A 20% tax on crypto gains above $2,100 per year is also imposed.

*Recent Developments:*

- *New Legislation*: A new act passed in June 2023 aims to fill gaps in existing regulations, enhancing user protection and market discipline.

- *Crypto-Friendly Leadership*: Lee Jae-myung, elected as the new leader, has made crypto promises to appeal to the nation's 15 million crypto investors ¹ ² ³.