🇰🇷 #SouthKoreaCryptoPolicy : A New Era of Crypto Regulation is Here 🔐

South Korea is on the verge of major crypto reforms through the second phase of its Virtual Asset User Protection Act, scheduled for rollout in the second half of 2025 .

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🔄 What’s Changing?

1. Institutional Access

• Charities, universities, law enforcement can sell crypto donations starting in H2 2025

• By H2 2025, up to 3,500 corporations & professional investors may open real‑name exchange accounts 

2. Tougher Exchange Rules

• Exchanges must follow stricter transparency standards, internal controls, and cold‑storage mandates

• Foreign platforms like BitMEX, KuCoin under scrutiny—non-compliance could mean sanctions or blocking  

3. New Tax Regulations

• Crypto gains face 20% tax, triggered starting January 2025, although full rollout may be delayed until 2027 

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🌐 Why It Matters

• Wider participation: Institutions entering the market can boost liquidity and legitimacy

• Enhanced investor confidence: Tighter controls & cold storage help protect user assets

• Global alignment: South Korea is matching regulatory frameworks seen in the EU, Hong Kong, and Singapore   

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🧭 What to Watch Next

• When will the second-phase rules be finalized and passed?

• Will the crypto tax get postponed to 2027—or go live in Jan 2025?

• How will stricter standards reshape popular exchanges and token listings?