#SouthKoreaCryptoPolicy 🇰🇷 The crypto policy situation in South Korea for 2024–2025:

✅ 1. Strict regulation but gradually opening up

• South Korea is one of the countries with very strict cryptocurrency regulations, especially after incidents like the Terra-LUNA collapse.

• However, from 2023–2024, the country has shown signs of gradually easing, recognizing crypto as part of the financial system.

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🔒 2. Investor protection & oversight policy (FSC - Financial Services Commission):

• All crypto exchanges must register and comply with anti-money laundering (AML/KYC) laws.

• Anonymous transactions have been banned.

• Bank accounts linked to exchanges must verify real identity (“real-name system”).

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📘 3. The “Virtual Asset User Protection Act” (effective from July 19, 2024):

A significant turning point:

• Requires exchanges to protect user assets, at least 80% of customer assets must be held in cold storage.

• Insider trading, price manipulation, and misinformation are prohibited.

• Severe penalties including imprisonment and heavy fines for violations (up to life imprisonment for large-scale embezzlement).

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💰 4. Crypto taxation:

• The government plans to impose a 20% capital gains tax on profits from crypto exceeding 2.5 million KRW (~1,875 USD).

• However, the plan has been continuously delayed, most recently postponed to 2025 to await a complete oversight system.

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🏦 5. CBDC and stablecoin:

• The Bank of Korea (BOK) is testing a domestic CBDC (central bank digital currency).

• Stablecoins not issued by banks are under strict control.