#SouthKoreaCryptoPolicy 🇰🇷 *#SouthKoreaCryptoPolicy101: What's Changing in 2025?**
South Korea continues to reshape its crypto landscape with a multi‑phase, forward‑thinking approach — balancing innovation, security, and institutional access:
🔸 *Virtual Asset User Protection Act (July 2024)*
Exchanges must hold ≥ 80% of user crypto in cold wallets, stash user deposits with licensed banks, keep crypto reserves in sync, and maintain insurance against hacks and liquidity risks .
🔸 *Stablecoin Rules & Cross‑Border Oversight (H2 2025)
The FSC plans to implement specific stablecoin frameworks and new mandates for exchanges and VASPs by late 2025 .
🔸 Institutions Invited In (2025 Phased Roll‑out)
– H1 2025: Non‑profits, universities, charities granted permission to sell crypto donations under strict compliance & audit rules .
– H2 2025: Pilot for ~3,500 corporate/professional investors to use real-name accounts and trade .
🔸 Enhanced AML, Licensing & Institutional Guidelines
Strict KYC/AML set‑ups, corporate real‑name banking tied to exchanges, crime‑focused task forces, LEI tracking systems, and draft institutional-investor guidelines by Q3 2025 .
🔸 Tax Roll‑out Delayed
A planned 20% capital gains tax on crypto profits (over threshold) has been postponed until 2028, giving the market breathing space .
🎯 Why It Matters:
Retail security is upgraded — thanks to strict reserves, cold storage, insurance, & AML.
Stablecoin clarity & global trade compliance may boost trust and reliability.
Institutions entering shores up liquidity, legitimizes participation.
Tax delay maintains momentum during critical growth phases.
💬 Over to you: With institutions and stablecoin clarity entering the picture, do you expect Bitcoin & ETH adoption to shoot higher in South Korea? Drop your take! 👇
