#SouthKoreaCryptoPolicy South Korea Crypto Policy Update (June 2025)

South Korea's crypto regulations are rapidly evolving under bipartisan support, with both major parties backing spot crypto ETFs and a won-based stablecoin to curb capital flight . Key developments under the Financial Services Commission (FSC):

Institutional Access: Nonprofits and universities can now trade crypto via real-name accounts; corporations gain access in Q3 2025 .

Stricter Oversight: Exchanges must filter "zombie coins" and memecoins, enforce enhanced KYC/AML, and comply with the Virtual Asset User Protection Act (penalties for fraud) .

Market Growth: With 16M+ users (33% of the population) and daily trading volumes rivaling stock indices, crypto's economic role is expanding .

A 20% crypto tax was delayed to 2027 amid enforcement concerns .

Impact: These policies aim to balance innovation with investor safety, positioning South Korea as a regulated crypto hub .