Here’s a look at how South Korea’s crypto rulebook has been leveling up:

In July 2024, the Act on the Protection of Virtual Asset Users (VAUPA) officially kicked in, giving the Financial Services Commission broad powers to supervise and sanction exchanges, enforce cold-wallet reserves, and crack down on unfair trading practices like wash-trading or insider leaks. On top of that, VASPs now need insurance or reserve funds to cover hacks and system failures.

Come 2025, South Korea is rolling out a phased pilot to let institutions—think charities, universities, then professional investors—open real-name exchange accounts and even unload their crypto donations legally for the first time since 2017. This marks a big shift toward bringing deeper pockets into the market under tighter oversight.

Throughout 2024, the FSC also tightened AML rules, requiring quarterly compliance reports and audits, and pushed a new Stablecoin Regulation Act mandating 1:1 fiat reserves plus regular independent checks—aimed squarely at preventing another Terra-style fiasco.

Looking ahead, regulators plan a second wave of guidelines on trading, custody, brokerage, and stablecoin frameworks, with drafts expected by mid-2025. All told, Seoul’s carving out a detailed, step-by-step path toward a safer, more institutional-friendly crypto scene—without killing that DeFi spirit. #SouthKoreaCryptoPolicy