#SouthKoreaCryptoPolicy South Korea's Crypto Policy: Key Developments & Framework(2025)1️⃣Institutional Access Expasion Corporate/Nonprofit Entry:Non profits (charities, universities) can now sell crypto donations via real-name exchange accounts after meeting strict conditions (5+ years audited operations, internal review committees) .
Exchanges permitted to liquidate user-fee crypto (e.g., for operational costs), but capped at 10% daily sales volume and restricted to top 20 tokens by market cap .
Corporate Pilot (Q3 2025): k3,500 companies and professional investors gain crypto trading access, ending a ban since 2017 .
2️⃣ Stricter Market Regulations
KYC/AML Enforcement:
Banks and exchanges must enhance due diligence, especially for institutional clients, following Upbit’s 600,000+ KYC violations .
All donations/fiat conversions require verified Korean won bank accounts .
Exchange Listings: Exchanges must delist low-liquidity "zombie coins" and scrutinize memecoins. New tokens need minimum circulating supply to prevent price manipulation .
3️⃣ Pro-Crypto Political Shift
Newly elected President Lee Jae-myung (Democratic Party) advocates:
Launching a won-pegged stablecoin to reduce reliance on USDT/USDC .
Legalizing spot crypto ETFs and allowing National Pension Fund crypto investments .
Bipartisan support for crypto growth, with rival Kim Moon-soo also backing ETFs .
4️⃣ Market Growth & Challenges
User Base: 18M+ Koreans (35% of population) hold crypto accounts .
Revenue Projection: Market to grow 16.1% CAGR (2025–2030), reaching $635M+ by 2030 .
Frictions: Real-name banking requirements create entry barriers for exchanges; NFC infrastructure limits Apple Pay adoption (only 10% store support) .
5️⃣ Future Focus
Tokenized Securities: Legislation under review to integrate blockchain-based assets into traditional finance .
Stablecoin Rules: Phase 2 of Virtual Asset User Protection Act imposes stricter standards for stablecoins and custody .
TL;DR: South Korea balances crypto innovation with rigorous
