#SouthKoreaCryptoPolicy

South Korea's cryptocurrency policy is characterized by a "strict yet supportive" approach, seeking to balance investor protection and the prevention of money laundering with the promotion of innovation in the blockchain and crypto space. Recently, there has been a trend towards greater legitimization and integration of digital assets into the financial system.

Investor Protection and Strict Regulations: Virtual Asset User Protection Act: This law, which is expected to be fully implemented in 2024, marks an important milestone. It focuses on user security, with mandatory reserve systems for cryptocurrency platforms and real-time monitoring. "Real-Name Bank Accounts" Rules: Since 2017, it has been mandatory for cryptocurrency traders to use real-name bank accounts linked to cryptocurrency exchanges. This helps prevent anonymity and combat money laundering. Requirements for Exchanges: Cryptocurrency exchanges must obtain a license from the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC) and comply with strict anti-money laundering (AML) and "Know Your Customer" (KYC) obligations. This includes implementing customer due diligence processes and reporting suspicious transactions. Stricter Listing Standards: Stricter rules are being implemented for the listing of digital assets on exchanges, including minimum circulating supply requirements before a token can be traded and temporary restrictions on market orders after listing. "Zombie tokens" (with low volume and market capitalization) and "memecoins" without clear utility will face greater scrutiny. Prohibition on Exchanges Selling Their Own Tokens: To prevent conflicts of interest, exchanges are prohibited from selling tokens on their own platforms.