#SouthKoreaCryptoPolicy South Korea's crypto policy is evolving under President Lee Jae-myung's administration, with a focus on integrating digital assets into the country's regulatory and financial systems. Here are the key developments ¹ ²:

- *Digital Asset Basic Act (DABA)*: The likely enactment of DABA aims to provide a regulatory framework for the crypto industry, including a self-regulatory body, stablecoin approval system, and clearer rules for crypto service providers.

- *Spot Crypto ETFs*: President Lee backs approving spot crypto exchange-traded funds (ETFs), which are currently banned. Regulatory discussions were already underway before the election.

- *Won-Based Stablecoin*: Lee proposes launching a centralized, fiat-backed won-based stablecoin, contrasting with the failed Terra project. This could leverage K-culture, such as K-pop and K-dramas, to promote the stablecoin in Southeast Asia.

- *Regulatory Bodies*: The Financial Services Commission (FSC) oversees crypto regulations, while the Financial Supervisory Service (FSS) and Korea Financial Intelligence Unit (KoFIU) also play key roles.

- *Taxation*: The 20% tax on crypto gains exceeding 2.5 million won has been delayed until 2028 due to concerns about market volatility and tax infrastructure.

- *Crypto Exchanges*: Major exchanges like Upbit and Bithumb dominate the market, with strict regulations requiring real-name verification, KYC/AML procedures, and cold wallet storage for user assets.

- *International Collaboration*: South Korea may collaborate with other countries to develop harmonized regulatory frameworks for the crypto industry.

These developments signal a more crypto-friendly approach under President Lee's administration, with a focus on balancing innovation and consumer protection.