South Korea witnessed a surge in cryptocurrency policies in 2025, driven by the presidential elections and an industry-friendly approach. Here are the key developments:
🔹 Opening the door for institutions
- The Financial Services Commission (FSC) lifted the ban on institutional investment in cryptocurrencies, starting with charities and universities (extension of cryptocurrency donation rules).
- By the third quarter of 2025, 3,500 companies and professional investors will be allowed to trade through real-name bank accounts.
🔹 New restrictions to protect investors
- Tightening listing standards for cryptocurrencies: banning 'zombie coins' and useless 'meme coins', and requiring exchanges to meet minimum liquidity conditions.
- Capping exchange user fees: no more than 10% daily, limited to the top 20 coins by market capitalization.
🔹 Unprecedented political support
- New president Lee Jae-myung (Democratic Party) pushes for adoption:
• ETF funds for cryptocurrencies (including Bitcoin).
• Launch of a stablecoin linked to the Korean won to stop capital outflow.
- Bipartisan movement towards easing banking restrictions on exchanges.
🔹 Combating digital crimes
- Activating the Digital Asset User Protection Act (July 2024) which criminalizes market manipulation with penalties of up to life imprisonment.
- Establishment of a permanent unit to combat cryptocurrency crimes, recovering nearly $500 million in illicit funds.
❓ Question:
> As South Korea transforms into an investment oasis for institutions, do you think its balance between openness and strict regulation will attract global capital? Or could the new tightening hinder innovation? Share your thoughts! 👇