#SouthKoreaCryptoPolicy

Dear friends,

South Korea is tightening crypto regulations while opening institutional access. Under the Virtual Asset User Protection Act (July 2024), exchanges must hold at least 80% of user funds in cold wallets and provide insurance coverage.

Real-name accounts are mandatory for all Virtual Asset Service Providers (VASPs). A 20% tax on gains over 50 million KRW/year is delayed until 2028.

In 2025, institutional investors and select corporations can trade crypto legally for the first time since 2017.

The government is also preparing laws to regulate stablecoins, token listings, and cross-border transactions, requiring monthly reporting to the Bank of Korea. This policy shift aims to foster innovation while preventing fraud and market manipulation in the growing digital asset space.