#SouthKoreaCryptoPolicy 🇰🇷 Key Regulatory Frameworks & Acts
🔸 1. Virtual Asset User Protection Act (VAUPA)
Enacted July 2024, this law empowers the Financial Services Commission (FSC) to supervise exchanges and imposes strict user safeguard rules—like requiring ≥ 80% of user funds in cold wallets, mandatory insurance, and separation of user and company assets .
VASPs must register with the Korea Financial Intelligence Unit, secure ISMS certification, use real-name banking, keep 15 years of records, and comply with AML/KYC obligations .
🔸 2. Act on Reporting & Specified Financial Transaction (since 2021)
Introduced AML controls via mandatory real-name accounts, FIU reporting, and licensed status for exchanges .
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🛡️ Institutional & Corporate Participation
🔸 Crypto Donations & Institutional Accounts
Starting H2 2025, the FSC will allow charities, universities, and some institutional investors (~3,500 entities) to open real-name accounts and sell donated crypto under a phased pilot .
Q3 2025 will bring formal guidelines for public companies and professional investors to enter the crypto market .
🔸 One-Exchange–One-Bank Rule Abolished
As of April 2025, exchanges can partner with multiple banks, improving flexibility and competition .
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📈 Institutional Market & ETFs
🔸 Spot Crypto ETFs & Expansion Plans
The ruling People Power Party’s 2025 agenda includes legalizing spot ETFs, promoting tokenized securities (STOs), creating small-investor tax relief, and global-standard stablecoin regulations .
The FSC is drafting a second-phase crypto regulatory bill to enhance transparency, listing standards, and stablecoin controls, expected H2 2025 .
🔸 1. Virtual Asset User Protection Act (VAUPA)
Enacted July 2024, this law empowers the Financial Services Commission (FSC) to supervise exchanges and imposes strict user safeguard rules—like requiring ≥ 80% of user funds in cold wallets, mandatory insurance, and separation of user and company assets .
VASPs must register with the Korea Financial Intelligence Unit, secure ISMS certification, use real-name banking, keep 15 years of records, and comply with AML/KYC obligations .
🔸 2. Act on Reporting & Specified Financial Transaction (since 2021)
Introduced AML controls via mandatory real-name accounts, FIU reporting, and licensed status for exchanges .
---
🛡️ Institutional & Corporate Participation
🔸 Crypto Donations & Institutional Accounts
Starting H2 2025, the FSC will allow charities, universities, and some institutional investors (~3,500 entities) to open real-name accounts and sell donated crypto under a phased pilot .
Q3 2025 will bring formal guidelines for public companies and professional investors to enter the crypto market .
🔸 One-Exchange–One-Bank Rule Abolished
As of April 2025, exchanges can partner with multiple banks, improving flexibility and competition .
---
📈 Institutional Market & ETFs
🔸 Spot Crypto ETFs & Expansion Plans
The ruling People Power Party’s 2025 agenda includes legalizing spot ETFs, promoting tokenized securities (STOs), creating small-investor tax relief, and global-standard stablecoin regulations .
The FSC is drafting a second-phase crypto regulatory bill to enhance transparency, listing standards, and stablecoin controls, expected H2 2025 .