#SouthKoreaCryptoPolicy

South Korea Tightens Crypto Oversight

Major developments are unfolding as South Korea implements stricter crypto regulations under its new Virtual Asset User Protection Act, taking effect in July 2025.

🔒 What’s Changing?

Crypto exchanges must now hold 80% of user funds in cold wallets.

Mandatory insurance coverage against hacks and system failures.

Harsher punishments for market manipulation, including life imprisonment for severe violations.

📉 These moves aim to restore trust after past scandals and better protect investors — but they’re also adding pressure to exchanges and crypto firms operating in the country.

💬 The crypto community is split:

Some applaud the push for transparency and safety, while others fear overregulation could stifle innovation