**#SouthKoreaCryptoPolicy: Tight Control & Innovation Push**
South Korea enforces strict crypto regulations while nurturing blockchain growth. The **Financial Services Commission (FSC)** mandates real-name banking, bans privacy coins, and requires exchanges to obtain ISMS certification.
**Key policies:**
✅ **Taxation:** 20% on crypto gains over $2,100 (deferred to 2025)
✅ **Trading:** Only KRW pairs allowed (no P2P fiat)
✅ **AML:** Mandatory KYC for all transactions
**Paradox:** While retail trading faces hurdles, the government actively invests in:
• **Metaverse & NFT initiatives** ($187M fund)
• **CBDC development** (phase 2 testing completed)
• **Dubai-style crypto hub** (passed "Digital Asset Basic Act")
The verdict? Korea wants blockchain innovation—just not wild speculation. Global exchanges (Binance, OKX) struggle here while Upbit dominates.
**Insider note:** Gaming tokens & AI-crypto hybrids get quiet regulatory preference.