#SouthKoreaCryptoPolicy South Korea's crypto policy is shaped by its government and financial regulators, with a focus on protecting investors and maintaining market stability. Here are some key aspects¹:

- *Regulatory Framework*: The Financial Services Commission (FSC) and the Bank of Korea oversee the crypto industry, with the FSC regulating virtual assets and the Bank of Korea monitoring their impact on the economy.

- *Virtual Asset User Protection Act*: This law requires crypto exchanges to ensure safe custody of assets, disclose transaction information, and protect users' deposits.

- *Anti-Money Laundering (AML) and Know-Your-Customer (KYC)*: Crypto businesses must comply with AML and KYC regulations to prevent illicit activities.

- *Taxation*: South Korea taxes cryptocurrency gains as income, with tax rates ranging from 6.6% to 49.5%.

- *Licensing*: Crypto exchanges and businesses must obtain licenses to operate in South Korea.

- *Investor Protection*: The government has implemented measures to protect investors, including strict regulations on crypto advertising and marketing.

Overall, South Korea's crypto policy aims to balance innovation with investor protection and market stability.