South Korea has emerged as a global leader in cryptocurrency adoption and regulation with its progressive #SouthKoreaCryptoPolicy. The government has implemented a balanced approach, fostering innovation while ensuring investor protection through strict KYC/AML regulations. Recent developments include the Digital Asset Basic Act which clarifies legal status of cryptocurrencies and establishes guidelines for exchanges. Seoul's embrace of blockchain technology extends to CBDC development, with the Bank of Korea conducting successful pilots. The policy requires exchanges to maintain 80% of deposits in cold wallets and obtain ISMS certifications. These measures have positioned South Korea as a model for other nations navigating crypto regulation, though challenges remain in harmonizing global standards and preventing market manipulation. The country's unique 5% capital gains tax on crypto profits over 2.5 million KRW demonstrates its commitment to formalizing the digital asset economy.
