#SouthKoreaCryptoPolicy

South Korea's policy towards cryptocurrencies has seen a significant evolution between caution and institutional activation. In July 2024, the "Protection of Virtual Asset Users" law came into effect, requiring platforms to store 80% of user funds in cold wallets, and to have sufficient insurance and reserves to address hacking risks. In 2025, the Financial Services Commission (FSC) began allowing non-profit institutions and universities to sell cryptocurrency donations, followed by the opening of accounts in the names of institutions and companies in the second half of the year. Furthermore, governments started discussing new legislation to regulate platform transparency, such as disclosing stable assets (stablecoins) and enhancing anti-money laundering efforts. These moves aim to strike a balance between protecting investors and facilitating institutional adoption of cryptocurrencies.

With this balance, Seoul is taking a strategic step towards developing a secure institutional digital ecosystem.