#SouthKoreaCryptoPolicy
South Korea has shifted from strict crypto oversight to a structured regulatory approach. The Virtual Asset User Protection Act (effective July 2024) requires Virtual Asset Service Providers (VASPs) to register with financial authorities, use real-name bank accounts, store at least 80% of users’ assets in cold wallets, hold insurance, and monitor for market abuse. In 2025, institutional access to crypto is expanding: non-profits and public agencies can invest in H1, followed by listed companies by year-end. The government also plans to allow spot crypto ETFs and flexible banking services. Unregistered foreign exchanges are being actively blocked to ensure compliance.