Crypto Regulations in South Korea 2025

South Korea is one of the leading crypto hubs with a proactive approach to digital assets. It is actively involved in creating a structured, innovative, and robust regulatory framework for the crypto industry. In 2025, the nation will continue to prioritize transparency and security in its digital economy by tightening the existing rules. 

Major crypto regulations in South Korea 2025

June 1, 2025- Donation Monetization

• During a virtual asset committee meeting, the financial service commission allowed nonprofits with more than 5 years of experience in operation and verified by external audits to sell donated digital assets.
• This also includes a 10% daily sales cap and prohibition of selling through the exchange’s own platform.

• Now, virtual asset exchanges can liquidate user fees into crypto, this approach makes the crypto operation more flexible. Nonprofits are required to form an internal review committee to evaluate the suitability of the donation and ensure transparency.

May 20, 2025- Stricter KYC and AML compliance

• FSC finalizes new and stricter anti-money laundering compliance in crypto trading, mandating public companies and professional investors to adhere to AML obligations while trading.

• Banks are required to follow Know Your Customer (KYC) procedures; these stringent regulations aim to provide a secure and stable space for crypto.

May 20, 2025– FSC finalized new crypto regulations

• FSC finalized new crypto regulations, impacting non-profits, exchanges, and certain tokens. It also categorizes certain tokens as risky and limits their operation.

• Under the new regulation, nonprofits are restricted from selling crypto assets unless listed on major exchanges.

March 26, 2025- Blocking unauthorized crypto platforms

• The FIU stated that it is working with Apple to block unauthorized crypto platforms. In addition, Google Play removed 17 unlicensed trading platform apps in South Korea.

March 5, 2025- Reconsidering Bitcoin ETF ban

• Noting Japan’s evolving regulatory approach as a potential model for crypto, the FSC reconsidered legal pathways to allow Bitcoin ETFs.

February 2025– FSC announcement about crypto adoption and licensing 

• The Financial Services Commission (FSC) has allowed non-profit organizations, such as charities and universities, to open real-name verified accounts on cryptocurrency exchanges. Crypto trades in South Korea must be tied to a real account name bank account to improve accountability.

• For the first time in history, a pilot program was introduced to allow 3500 corporations and professional investors to trade on digital platforms. It will be in force in the third quarter of 2025.

January 1, 2025 to January 1, 2027- Tax delay

• A 20% crypto tax was introduced by the lawmakers, which was once again pushed, this time to 2027.

What is the South Korean government saying about crypto?

• Protection measures: The Financial Supervisory Service of South Korea (FSS) operates under the Financial Service Commission (FSC) to examine the crypto space in the region. Currently, the organization is prioritizing stricter crypto regulations to inspect illegal activities within the domain and take strict action against them.

• AML Obligation: Currently, FSS is focusing on overseeing AML obligations among investors and platforms trading crypto. FSC is developing a second phase of crypto fregulations focusing on service provider compliance.

Licensing/ Registration

• National License: Crypto platforms like Bithumb, Flybit, and GDAC exchange have been officially registered under the Financial Intelligence Unit (FIU), making them country-licensed to operate crypto trading. Besides this, Virtual Asset Service Providers (VASP) are to operate digital trading in South Korea.

• Required Certification: Crypto exchange platforms are required to obtain a certification from the Korea Internet Security Agency (KISA) for Information Security Management System (ISMS). This approach was introduced with the real-name accounts verification approach in 2025.

Crypto tax in South Korea

• New law: The new implementation to impose a 20% capital tax on crypto gains is delayed to 2027, and there is no alternate crypto tax in South Korea as of 2025.

• Tax-free: Crypto is not classified as legal tender in South Korea; however, crypto exchanges are legal and are governed by federal law in the region. Sp, because crypto is not considered a national currency or a financial asset, it remains tax-free in South Korea.

Crypto adoption rate in South Korea

• Adoption rate: In 2025, the penetration rate of cryptocurrency users in South Korea is approximately 22.48%, which is expected to increase by 23.85 million by 2026. It is expected that the crypto adoption will reach 12.31 million by 2026.

• Crypto Revenue: The current crypto market revenue in South Korea is US$1.1 billion, which is expected to reach up to US$1.3 billion by 2026. The current crypto market is growing at a rate of 12.15% from 2025 to 2026.

• Crypto Holdings: The South Korean government is yet to disclose its crypto holdings; policies focus on building a safe crypto environment for investors and consumers. In March, South Korea’s Ethics Commission for government officials reported that 20% of public officials hold crypto assets.

Conclusion

In 2025, South Korea proved to be one of the most active crypto markets in the world, with its smart steps to enhance user safety. It established transparency in digital finance and created a better version of crypto regulations for the users. With the new crypto-friendly president, Lee Jae-myung, South Korea continues to thrive in the digital assets landscape.

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