#SouthKoreaCryptoPolicy South Korea is redefining its stance towards cryptocurrencies, transitioning from strict regulation to a more open and favorable approach. Driven by significant retail adoption —with millions of users— and growing institutional interest, the country seeks to balance innovation with investor protection.

Recently, policy has shown a clear pro-crypto shift. There is a strong push to legalize spot Bitcoin exchange-traded funds (ETFs) and to introduce a market for "stablecoins" backed by the Korean won, aiming to modernize its finances and reduce capital outflows. Additionally, plans are in place to ease restrictions in blockchain innovation zones to accelerate local growth.

However, this openness does not imply a total relaxation. The regulatory framework maintains a firm commitment to transparency and anti-money laundering (AML/KYC), requiring accounts with real names and strict regulations for exchanges. A "second phase" of legislation is sought to provide greater operational clarity, especially for stablecoins. In essence, South Korea aims for a model that fosters crypto development while ensuring market stability and trust.