#SouthKoreaCryptoPolicy

📜 Core Regulatory Framework

1. Licensing and Registration

Since March 2021, all virtual asset service providers (exchanges, managers) must register with the Korea Financial Intelligence Unit under the Financial Services Commission (FSC). Requirements include real-name banking, ISMS certification, and compliance checks for directors .

2. Virtual Asset User Protection Act (VAUPA)

Passed in 2023 and effective July 19, 2024, this act empowers the FSC to enforce user protections, including:

• Mandatory cold storage of ≥ 80% of client assets

• Transparency in token listings

• Monitoring and penalizing unfair practices  

⸻

🏛️ Institutional Access Expansion

Phase 1 (H1 2025)

• Charities, universities, schools, and law enforcement can open real-name exchange accounts and sell previously donated or held crypto .

Phase 2 (H2 2025)

• Around 3,500 listed companies and professional investors can access the market for trading digital assets, via a phased regulatory rollout .

This two-stage plan signals a major shift from the 2017 corporate crypto ban