#SouthKoreaCryptoPolicy South Korea is embracing crypto with bold regulatory shifts! The Financial Services Commission (FSC) is rolling out a phased approach to lift the 2017 ban on institutional crypto trading, starting with non-profits and universities selling Bitcoin and Ethereum, followed by listed companies in Q3 2025. The Virtual Asset User Protection Act (VAUPA), effective July 2024, mandates VASPs to store 80% of user assets in cold wallets and implement strict AML/KYC measures to ensure transparency and security. Enhanced KYC reforms aim to curb money laundering, while a Digital Assets Committee is reforming crypto laws. President Lee’s appointment of Kim Yong-beom, ex-Hashed CEO, signals a pro-crypto stance. Plans for spot Bitcoin ETFs by 2025 and tokenized securities legislation show South Korea’s ambition to become a global crypto hub, balancing innovation with investor protection.
