#SouthKoreaCryptoPolicy 🇰🇷 South Korea’s Crypto Policy: Regulate to Accelerate

South Korea is stepping up as a global leader in crypto regulation, aiming to protect users while encouraging responsible innovation.

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📜 Key Highlights:

1. Virtual Asset User Protection Act (Effective July 2024)

Exchanges must store 80% of assets in cold wallets

User funds separated from company funds

Mandatory insurance against hacks

Real-time monitoring for price manipulation

2. Institutional Access Coming

By mid-2025, charities, schools, and companies will be allowed to trade crypto through regulated channels

Institutional entry is expected to boost liquidity and trust

3. Stablecoins & Cross-Border Controls

New frameworks for stablecoin regulation and redemption

Monitoring cross-border crypto transfers to prevent illicit flows

4. Taxes Delayed

A proposed 20% tax on crypto profits over ₩2.5 million (~$1,800) is postponed until 2028, allowing time for market stability