#SouthKoreaCryptoPolicy
#SouthKoreaCryptoPolicy
🇰🇷 1. Foundational Regulations & Investor Protection
Virtual Asset User Protection Act (VAUPA) was passed in June 2023 and officially enforced July 2024. It mandates:
Exchanges secure at least 80% of users’ crypto in cold storage,
Real‑name bank accounts and MIS certification,
Custodian banks safeguard fiat deposits, plus mandatory insurance and transaction logs
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It integrates AML/KYC rules, with the FSC empowered to police exchanges and enforce penalties
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💰 2. Taxation: Designed but Deferred
A 20% capital gains tax on profits over ₩2.5 million (~$1,800) was slated for 2023.
This has been repeatedly postponed—now expected to go live in 2028, to avoid dampening market activity
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🏦 3. Institutional & Corporate Access: Era of Transition
Since 2017, institutions have been effectively barred from crypto access due to AML concerns.
In 2025, a pivot begins:
Q1‑Q2 2025: Nonprofits/universities pilot crypto trading donations, allowed "real-name" exchange accounts
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By Q3 2025: FSC will release full institutional investment guidelines, allowing ~3,500 corporates and professional investors access
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Corporate vehicle access is being phased in, not abruptly opened
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🏦 4. Banking & Exchange Infrastructure
The strict one-exchange-one-bank requirement is being scrapped to foster competition and innovation
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Cross-border crypto flows will require registration and monthly reporting to the Bank of Korea starting H2 2025
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FSC is now empowering banks to support crypto firms, after years of discouragement