#SouthKoreaCryptoPolicy

Cryptocurrency Policy in South Korea: A Simplified Approach

South Korea has strict rules for cryptocurrencies. Its main objective is to protect investors and prevent money laundering. Therefore, they require cryptocurrency exchanges to follow very stringent regulations, such as identity verification (knowing who the customer is) and the use of real names for all accounts.

This form of regulation has had mixed results for Korean companies:

* The good: Clear rules have allowed large companies like Kakao (with its cryptocurrency Klay) and Line (with Link) to develop blockchain projects and issue their own coins in a regulated manner.

* The complicated: Obtaining licenses and complying with oversight is difficult for smaller companies. However, this also creates an environment of greater trust and legality for investing in crypto.

In addition to trading, Korean companies are investing in blockchain technology and NFTs (Non-Fungible Tokens) to find practical uses for them.