#SouthKoreaCryptoPolicy SouthKoreaCryptoPolicy – What You Should Know

• Comprehensive protection law (2023–24)

The Virtual Asset User Protection Act came into effect in July 2024. It mandates:

• At least 80% of user funds held in cold wallets

• Segregation of user assets, mandatory insurance, and full KYC/AML compliance

• Enhanced enforcement power for the FSC against unfair trading and exchanges 

• Delayed crypto tax

A 20% capital gains tax applies to profits above ₩2.5 million (~US $2,000), but implementation is postponed from 2025 to 2028 due to market concerns .

• Institutional & corporate access in 2025

A pilot program will allow charities, universities, and ~3,500 corporations to open real-name accounts starting H1 2025, with full access expected in H2 2025 .

• Upcoming second-phase law

In H2 2025, a follow-up framework is set to introduce:

• More transparent token listings

• Regulated stablecoins with reserve and disclosure rules

• Same transparency duties as traditional finance .