#SouthKoreaCryptoPolicy **#SouthKoreaCryptoPolicy – A Complete Guide to Regulations & Market Impact**
South Korea is one of the most active crypto markets globally, but its regulatory landscape is strict and evolving. Here’s everything you need to know about **South Korea’s crypto policies** and how they affect traders, exchanges, and blockchain innovation.
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### **1. Key Regulatory Bodies**
- **Financial Services Commission (FSC)** – Main regulator overseeing crypto policies.
- **Financial Intelligence Unit (FIU)** – Monitors AML (anti-money laundering) compliance.
- **Korea Financial Supervisory Service (FSS)** – Conducts market inspections.
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### **2. Major Crypto Regulations in South Korea**
#### **A) Real-Name Banking System (2018)**
- All crypto exchanges **must partner with local banks** to offer real-name verified accounts.
- Users **cannot deposit anonymously**—only KRW-linked accounts are allowed.
- **Impact:** Reduced fraud but limited exchange options (only **Upbit, Bithumb, Korbit, Coinone** comply).
#### **B) Ban on Anonymous Trading (2021)**
- All crypto transactions **must be KYC/AML verified**.
- Privacy coins (Monero, Zcash, Dash) **delisted** from major exchanges.
#### **C) Travel Rule Enforcement (2022)**
- Exchanges must **share sender/receiver info** for transactions over **₩1 million (~$750)**.
- Aligns with **FATF (Financial Action Task Force)** standards.
#### **D) Strict Taxation (2025 Update)**
- **Capital gains tax (20%)** on crypto profits over **₩2.5 million (~$1,900)** postponed to **2025**.
- **Gift/inheritance tax** may apply to crypto holdings.
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### **4. How This Affects Traders & Investors**
✅ **Pros:**
- Stronger consumer protection against scams/hacks.
- More institutional trust due to regulatory clarity.
- Reduced market manipulation risks.
