#SouthKoreaCryptoPolicy

🇰🇷 South Korea's Digital Currency Policy – 2025 Update

🛡️ 1. Investor Protection and Exchange Regulation

Starting from July 2024, the "Virtual Asset User Protection Act" will come into effect, which includes:

Requiring platforms to keep 80% of customer funds in cold wallets.

Separating customer funds from company funds.

Insurance against hacks and thefts.

Tightening oversight on market manipulation, fraud, and pump and dump schemes.

🏛️ 2. Gradual Allowance for Institutions to Access the Crypto Market

After a long ban since 2017, South Korea has started to gradually allow institutions to engage with digital currencies:

Beginning of 2025: Banks, government agencies, universities, and charitable organizations will be allowed to own real accounts to buy and sell digital currencies.

Third quarter of 2025: A regulatory framework will be issued allowing professional investors and public companies to trade.

Second half of 2025: Digital asset service providers will be required to register their data monthly with the Bank of Korea to reduce money laundering and evasion of foreign exchange laws.

🔐 3. Enhancing Stability and Preventing Manipulation

New listing standards for cryptocurrencies include:

Minimum circulating supply.

Higher transparency in disclosures.

Prohibition of price manipulation.

Upcoming new regulations for stablecoins: Will include reserve support and redemption rights.