#SouthKoreaCryptoPolicy

South Korea is undertaking sweeping reforms aimed at integrating digital assets into its finance system—while tightening oversight. Starting June 2025, the Financial Services Commission (FSC) will allow non‑profits and crypto exchanges to sell crypto assets under new compliance rules. Non‑profits must possess at least five years of audited operations and establish Donation Review Committees, as well as route donations through verified KRW accounts. Exchanges can liquidate crypto-held fees—but only within 10% daily caps, limited to the top-20 tokens, and barred from trading these on their own platforms to prevent conflicts of interest.

In parallel, the FSC is rolling out stricter KYC/AML requirements, extending mandatory real-name and identity checks across banks, exchanges, and charitable bodies to curb money laundering.

These efforts are paving the way for institutional participation: by Q3 2025, professional investors, listed firms, and even the National Pension Service are expected to gain market entry, marking an end to an eight-year institutional ban.

Both major political parties support legalizing spot crypto ETFs, won‑pegged stablecoins, and easing the “one exchange, one bank” rule, signaling bipartisan momentum.

Together, these reforms reflect a balanced strategy: promoting innovation and institutional adoption while bolstering investor safeguards and market stability.