#SouthKoreaCryptoPolicy
Based on comprehensive analysis of South Korea's evolving cryptocurrency regulatory landscape, here is a structured overview of key policy developments and their implications:
### 🗳️ 1. **Political Shifts & Bipartisan Crypto-Friendly Agenda**
- **New Leadership:** Crypto advocate Lee Jae-myung elected president (June 2024), defeating Kim Moon-soo with 49.4% votes. His platform included legalizing spot crypto ETFs, won-pegged stablecoins, and institutional investment via pension funds .
- **Bipartisan Consensus:** Both major parties supported easing regulations—spot ETF legalization and stablecoin development were shared priorities, signaling policy continuity regardless of election results .
- **Stablecoin Push:** Lee specifically proposed a KRW-based stablecoin to "prevent national wealth leakage" from dominant USD-backed stablecoins (e.g., USDT, USDC) .
### 🏦 2. **Institutional Entry & Corporate Access**
- **Phased Rollout:**
- **Nonprofits/Universities:** Granted crypto trading access in Q2 2025 via real-name verified accounts, with strict donation liquidation rules (e.g., immediate sale upon receipt) .
- **Corporations/Professional Investors:** Pilot program launching Q3 2025 for ~3,500 entities .
- **Exchange Regulations:**
- Caps on crypto fee liquidation (max 10% daily) .
- Ban on exchanges selling tokens on their own platforms to avoid conflicts .
### ⚖️ 3. **Tax & Security Policies**
- **Tax Delay:** 20% capital gains tax postponed to 2027—third delay since 2022—due to enforcement challenges and fears of capital flight .
- **Anti-Hacking Measures:** Joint US-Japan-S.Korea warnings against North Korean cyber threats (e.g., Lazarus Group), following $50M Upbit hack .
- **Crime Enforcement:** Permanent "Virtual Asset Crime Joint Investigation Division" established, recovering $490M in illicit gains since 2023 .
### 📜 4. **Regulatory Framework Tightening**
- **AML/KYC Rules:**
- **Travel Rule:** VASPs must exchange sender/receiver data for transfers >₩1M
