#SouthKoreaCryptoPolicy

South Korea is leading with strict but structured crypto regulations. The new Virtual Asset User Protection Act requires exchanges to store at least 80% of user funds in cold wallets, maintain insurance coverage, and separate client assets from company funds. A 20% capital gains tax on crypto profits will take effect from January 1, 2025. Starting in 2025, approved institutions like charities, listed companies, and professional investors will be allowed to trade crypto under stricter oversight. Future regulations will also focus on transparency in token listings, stablecoin reserves, and mandatory disclosures—aiming to build a safer, more credible crypto environment.