#SouthKoreaCryptoPolicy Cryptocurrencies

The laws governing cryptocurrency exchanges in South Korea are strict, including government registration and other procedures monitored by the Financial Services Commission (FSC) of South Korea.

The South Korean government imposed restrictions on the use of anonymous accounts in cryptocurrency trading in 2017, prohibiting local financial institutions from hosting Bitcoin futures contracts, raising suspicions of an impending ban. The Financial Services Commission (FSC) also tightened reporting requirements for banks that have accounts in cryptocurrency exchanges in 2018.

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

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