#SouthKoreaCryptoPolicy

South Korea is rapidly evolving its cryptocurrency policy, aiming for a secure and transparent digital asset market. The Virtual Asset User Protection Act, effective July 2024, is a cornerstone, emphasizing investor protection, mandatory reserve systems for exchanges, and real-time monitoring.

The government is also reviewing legal pathways for spot Bitcoin ETFs and gradually allowing corporate participation in the virtual asset market, starting with non-profits and universities. While a 20% capital gains tax on crypto profits has been delayed to 2027, stricter anti-money laundering (AML) and know-your-customer (KYC) protocols, including real-name bank accounts for trading, are in place. These reforms aim to balance innovation with market integrity.