#SouthKoreaCryptoPolicy

South Korea's crypto policy is evolving to create a more secure and transparent digital asset landscape. Here are some key developments¹ ² ³:

- *Regulatory Framework*: The country is introducing robust investor protection measures and reinforcing anti-money laundering protocols. The Financial Services Commission (FSC) oversees digital transactions and ensures exchanges meet rigorous compliance standards.

- *Digital Asset Basic Act (DABA)*: The likely enactment of DABA will propose a legally recognized self-regulatory body, a stablecoin approval system, and clearer rules for crypto service providers.

- *Spot Crypto ETFs*: President Lee Jae-myung's administration is expected to introduce spot crypto exchange-traded funds (ETFs), which are currently banned under existing law.

- *Won-Based Stablecoin*: The government plans to launch a won-based stablecoin, a centralized, fiat-backed currency consistent with global regulatory trends.

- *Blockchain Innovation Zones*: Reduced restrictions in these zones aim to accelerate local growth and support small businesses and startups.

- *Investor Protection*: Authorities are enhancing collaboration between regulatory bodies to oversee digital transactions more effectively and prevent fraud.

- *Transparency and Security*: Exchanges must now meet strict compliance standards, ensuring accountability and reducing risks for investors.

The new administration under President Lee Jae-myung is expected to bolster the crypto industry, with a focus on⁴:

- *Supporting Low-Income Families and Small Businesses*: Through economic reforms and targeted initiatives.

- *Accelerating Digital Asset Legislation*: Completing the second phase of South Korea's digital asset legislation to provide clarity and stability to the industry.

Overall, South Korea's crypto policy is shaping up to be more supportive of innovation while maintaining market integrity and investor protection.