#SouthKoreaCryptoPolicy Update on Crypto Regulations South Korea is transforming its crypto regulatory framework, consolidating itself as a digital asset hub. In July 2024, the Virtual Asset User Protection Act (VAUPA) came into effect, requiring virtual asset service providers (VASPs) to separate user funds, store 80% in cold wallets, and have insurance against hacks. These measures aim to protect investors and prevent money laundering, aligning with FATF standards. In 2025, the government plans to gradually lift the 2017 ban on institutional crypto trading, allowing entities such as universities and NGOs to sell Bitcoin and Ethereum in the first phase, and publicly listed companies to participate in a pilot program in the second half of the year. Additionally, guidelines for spot crypto ETFs and stablecoins backed by the Korean won are being developed, driving institutional adoption. The Financial Services Commission (FSC) and the Financial Intelligence Unit (KoFIU) oversee a market of 55 trillion KRW, with strict KYC/AML requirements. Although taxation of crypto assets is on hold until the Digital Assets Act, a 20% tax is expected on gains exceeding $2,100 annually. South Korea is leading crypto regulation! #CryptoRegulation