#SouthKoreaCryptoPolicy
Flexibility of the current situation and the monster is coming
Key features of the law:
Asset separation: Trading platforms must store 80% of user deposits in cold wallets, separating user funds from platform funds.
Risk insurance: Platforms are required to provide insurance or establish reserve funds to address security incidents or financial crises.
Compliance with standards: Implementation of anti-money laundering (AML) measures and customer identity verification (KYC) to ensure market integrity.
Oversight and accountability: Granting regulatory bodies broad powers to monitor platforms and impose penalties on violators
South Korea adopts a more flexible policy towards digital currencies, as President Lee Jae-myung works to enhance transparency and protect investors. This includes the launch of cryptocurrency exchange-traded funds (ETFs) and the adoption of a stablecoin backed by the Korean won to reduce reliance on foreign currencies. The government is also seeking to pass the Digital Asset Basic Act (DABA) to establish a clear regulatory framework for the sector. The Financial Services Commission (FSS) oversees the market to ensure compliance with the new laws, while the rapid growth of cryptocurrency trading continues, sometimes exceeding the trading volumes of the KOSPI and KOSDAQ exchanges, reflecting the increasing popularity of digital assets in the country
