Cryptocurrencies

The regulations governing cryptocurrency exchanges in South Korea are strict, including government registration and other procedures monitored by the Financial Supervisory Service (FSS).

In 2017, the South Korean government imposed restrictions on the use of anonymous accounts in cryptocurrency trading and prohibited local financial institutions from hosting Bitcoin futures contracts, raising concerns about a possible ban. The Financial Services Commission (FSC) also tightened reporting requirements for banks with accounts at cryptocurrency exchanges in 2018.

The new laws restrict cryptocurrency trading to "customer-named bank accounts," meaning that the trader (customer) must establish an account in the customer's name at the same bank that the cryptocurrency dealer uses to deposit or withdraw funds from their electronic wallet. According to standard anti-money laundering and counter-terrorism financing regulations and organized reporting requirements for transactions, both the bank and the dealer must verify the trader's identity.

In 2020, the South Korean government amended existing legislation, expanding the mandatory anti-money laundering and counter-terrorism financing obligations to include all South Korean exchanges and requiring companies to obtain a license to operate from the unit.