#SouthKoreaCryptoPolicy New regulations on cryptocurrencies in South Korea

Cryptocurrencies are not considered legal tender in South Korea, and exchange platforms, although legal, are governed by a strict regulatory framework. In South Korea, the taxation of cryptocurrencies is an ambiguous area: since transactions with cryptocurrencies are neither cash nor financial assets, they are currently exempt from taxes. The Ministry of Strategy and Finance, on the other hand, has stated that it is considering imposing a tax on profits from cryptocurrency transactions and plans to publish a tax framework in 2022.

South Korea's cryptocurrency exchange laws are rigorous, including government registration and other procedures supervised by the Financial Supervisory Service of South Korea (FSS).

The South Korean government restricted the use of anonymous accounts in cryptocurrency trading in 2017 and banned local financial institutions from engaging in Bitcoin futures transactions, following reports of suspicions of a ban. Additionally, the Financial Services Commission (FSC) tightened information requirements for banks with accounts on cryptocurrency exchange platforms in 2018.