#SouthKoreaCryptoPolicy South Korea has a strict regulatory framework for cryptocurrencies, overseen by the Financial Services Commission (FSC). Here are some key aspects ¹:

- *Regulatory Bodies:*

- Financial Services Commission (FSC): primary regulator for crypto

- Financial Supervisory Service (FSS): assists in overseeing crypto regulations

- Korea Financial Intelligence Unit (KoFIU): involved in anti-money laundering efforts

- *Key Regulations:*

- Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures: required for crypto exchanges and service providers

- Virtual Asset User Protection Act (VAUPA): safeguards user assets, prevents unfair practices, and grants FSC oversight powers

- Cold wallet storage: at least 80% of users' assets must be stored in cold wallets to protect against hacking and system failures

- *Taxation:*

- 20% tax on crypto gains exceeding 2.5 million won (~ $1,800): implementation delayed until 2028

- *Initial Coin Offerings (ICOs) and Security Token Offerings (STOs):*

- ICOs: banned in 2017 due to concerns over fraud and market manipulation; potential lifting of ban being discussed

- STOs: viewed positively, with regulations in progress to allow STOs under the Capital Markets Law

- *Recent Developments:*

- President Lee Jae-myung's administration is expected to accelerate crypto integration, with plans for a Digital Asset Basic Act and potential approval of spot crypto ETFs

- Proposed won-based stablecoin: aims to leverage K-culture and promote digital assets in Southeast Asia

Overall, South Korea's crypto regulatory environment is complex, with a balance between innovation and consumer protection. The government continues to evolve its regulations to address emerging trends and technologies in the crypto space ².