#SouthKoreaCryptoPolicy

In South Korea, crypto is no longer hostile territory: since 2021, all exchanges must register with the financial unit (KoFIU) and apply strict KYC/AML, include real accounts and cold wallets, and comply with constant audits. In July 2024, the user protection law (VAUPA) required that VASPs keep at least 80% of funds in cold custody and obtain insurance against hacks. In 2024 and 2025, progress was made in regulations regarding stablecoins, DeFi, massive NFTs, and cross-border transactions. Additionally, institutional participation was enabled in phases: NGOs, universities, and soon listed companies will be able to operate crypto with real accounts.

This robust framework has a clear goal: to ensure transparency, protect the investor, and align innovation with integrity. Korea aims to be a global player, without losing sight of security.