#SouthKoreaCryptoPolicy

South Korea has been at the forefront of cryptocurrency regulation, balancing innovation with investor protection. The government's approach has evolved significantly in recent years.

Key Regulatory Developments

Virtual Asset User Protection Act (VAUPA): Effective July 19, 2024, this law mandates that virtual asset service providers (VASPs) segregate user assets, store at least 80% in cold wallets, and maintain insurance or reserve funds. It also prohibits market manipulation and empowers the Financial Services Commission (FSC) to oversee and penalize non-compliant entities .

Institutional Participation: In 2025, South Korea began allowing institutions, including universities, charities, and law enforcement agencies, to trade cryptocurrencies. A phased rollout includes real-name accounts and pilot programs for institutional investors, aiming to integrate corporate entities while ensuring financial stability .

Public Official Disclosures: Starting in 2024, approximately 5,800 public officials