#SouthKoreaCryptoPolicy

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

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 transactions, which raised doubts about the imposition of a ban. The Financial Services Commission (FSC) also tightened reporting requirements for banks with accounts in cryptocurrency exchanges in 2018.

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

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