#SouthKoreaCryptoPolicy In 2025, South Korea implements a series of significant reforms in the field of cryptocurrencies, with the aim of both liberalizing the market and strengthening regulations to protect investors and prevent illicit activities.

🔓 Liberalization of the cryptocurrency market

- Expanded access for institutions: Starting in the second half of 2025, non-profit organizations, universities, and publicly traded companies will be able to trade cryptocurrencies. This marks the end of the 2017 ban on institutional investment in digital assets.

- Elimination of the "one exchange - one bank" rule: this rule, which required cryptocurrency exchanges to work with only one bank for real-name verified accounts, will be abolished. The aim is to stimulate competition and facilitate user access to various banking services.

- Approval of spot ETFs for cryptocurrencies: ETFs that directly hold cryptocurrencies such as Bitcoin and Ethereum are expected to be approved by the end of 2025, aligning with trends in the US and UK.

🛡️ Strengthening regulations

Regulation of cross-border transactions*: Starting in the second half of 2025, companies involved in cross-border transactions with virtual assets will be required to register with the relevant authorities and report transactions to the Bank of Korea on a monthly basis. This measure aims to combat currency crimes, 81.3% of which involved virtual assets between 2020 and 2024.

- Introduction of a new cryptocurrency law: Financial authorities are working on additional legislation that will impose stricter transparency requirements on exchanges and stablecoin issuers, including disclosure obligations similar to those in traditional finance.

- Rules for stablecoins and STOs: Regulations are being developed for stablecoins and security token offerings (STOs) with the aim of aligning the market with international standards and ensuring investor protection.