#SouthKoreaCryptoPolicy

South Korea is actively shaping its crypto policy, balancing innovation with investor protection. Recent developments indicate a strong push towards clearer regulations, with both leading presidential candidates supporting measures like legalizing spot crypto ETFs and introducing a won-backed stablecoin.

Key aspects of South Korea's crypto framework include:

* Strict AML/KYC: Exchanges are required to implement robust Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures, including real-name bank accounts for trading.

* Virtual Asset User Protection Act: This act, which came into effect in July 2024, aims to protect users from unfair trading practices and safeguard their digital assets.

* Delay in Crypto Tax: A proposed 20% capital gains tax on crypto profits has been repeatedly postponed, now expected to take effect in 2027.

* Institutional Participation: Efforts are underway to formalize institutional participation in the crypto market, with plans to allow corporate entities to trade crypto using real-name accounts.

* Focus on Stablecoins: There's ongoing discussion and efforts to regulate stablecoins, with industry insiders advocating for a tailored approach specific to South Korea's market.

Overall, South Korea is striving to create a transparent and secure environment for its significant crypto user base, while also fostering the growth of its domestic blockchain industry.