#SouthKoreaCryptoPolicy #SouthKoreaCryptoPolicy In 2025, South Korea will strengthen its control over the cryptocurrency market, emphasizing transparency, security, and investor protection. But will this foster industry growth or, on the contrary, hinder it? Let's look at the key changes ๐Ÿง๐Ÿ‘‡

๐Ÿ“œ New Legislation

Starting July 2024, the Digital Asset User Protection Act will come into effect. It mandates cryptocurrency exchanges to:

store at least 80% of assets in cold wallets โ„๏ธ

create insurance reserves to cover hacking attacks ๐Ÿ›ก๏ธ

disclose conflicts of interest and fiscal information ๐Ÿงพ

๐Ÿ’ฐ Tax Reform

A 20% tax on profits from crypto assets will be introduced (provided that income exceeds 2,500,000 KRW โ‰ˆ $1,800). Launch is expected in 2025. ๐Ÿ’ธ

โš–๏ธ Strict Oversight

The South Korean Financial Services Commission (FSC) will gain more powers to verify tokens, halt trading of suspicious assets, and license projects. ๐Ÿ•ต๏ธโ€โ™‚๏ธ

๐Ÿ“ˆ What does this mean for the market?

โœ”๏ธ Investors will gain more confidence

โ— Startups will face bureaucracy

๐Ÿค South Korea aims to become the "Switzerland of the East"