#SouthKoreaCryptoPolicy
South Korea's crypto policy is designed to balance innovation with investor protection. The government has established a comprehensive regulatory framework, including ¹:$ETH
- *Key Regulations:*
- *Digital Asset Basic Act*: A comprehensive legal framework governing digital assets, defining regulatory guidelines for the sector.
- *Virtual Asset User Protection Act (VAUPA)*: Protects users and prevents market manipulation, with penalties for misconduct and transparency in trading.
- *Anti-Money Laundering (AML) and Know Your Customer (KYC)*: Strict requirements for Virtual Asset Service Providers (VASPs) to prevent illicit activities.$SOL
The Financial Services Commission (FSC) oversees crypto regulation, while the Financial Supervisory Service (FSS) ensures compliance, and the Korea Financial Intelligence Unit (KoFIU) manages AML and anti-terrorist financing.
*Recent Developments:*
- South Korea plans to lift its ban on institutional crypto investment with a two-phase regulatory framework.
- The government is working on guidelines for institutional crypto trading, expected to be introduced by Q3 2025.
- A Digital Asset Committee has been formed to centralize crypto policymaking under the president's office ² ³.
*Taxation:*
- Currently, crypto profits are not taxed, but a 20% tax on annual profits exceeding 2.5 million won is planned for 2028 ⁴.$BTC