#SouthKoreaCryptoPolicy South Korea is forging a robust regulatory framework for cryptocurrencies. The "Virtual Asset User Protection Act," in effect since July 2024, aims to protect investors and prevent unfair trading practices. This includes the segregation of user deposits and the prohibition of market manipulation.
Despite this, there is strong political support for the industry. Major presidential candidates have promised pro-crypto policies, such as the legalization of spot cryptocurrency ETFs and easing regulations. Authorities are also reviewing the possibility of allowing spot Bitcoin ETFs and have postponed the cryptocurrency capital gains tax until 2027. The nation seeks to balance innovation with investor protection.
