South Korea is advancing its cryptocurrency regulations, balancing innovation and investor protection. The Virtual Asset User Protection Act (VAUPA), effective July 2024, mandates Virtual Asset Service Providers (VASPs) to segregate user assets, store 80% in cold wallets, and comply with strict KYC/AML rules. In 2025, the Financial Services Commission (FSC) began phasing out a 2017 corporate crypto trading ban, starting with law enforcement and non-profits, with plans to include listed companies by Q3. A proposed 20% tax on crypto gains above $36,000 is set for January 2025, despite delays. Enhanced KYC measures aim to curb money laundering, aligning with global trends.
