• TEXT= DATE: 20.06.2025 TransferMole  |  IDO  | Blockchain Service
  • TIMER= 20.06.2025
  • BUTTON= DISCOVER MORE
  • bitcoinBitcoin (BTC) $ 42,977.00 0.18%
  • ethereumEthereum (ETH) $ 2,365.53 1.12%
  • tetherTether (USDT) $ 1.00 0.2%
  • bnbBNB (BNB) $ 302.66 0.19%
  • solanaSolana (SOL) $ 95.44 1.28%
  • xrpXRP (XRP) $ 0.501444 0.1%
  • usd-coinUSDC (USDC) $ 0.996294 0.34%
  • staked-etherLido Staked Ether (STETH) $ 2,367.26 1.4%
  • cardanoCardano (ADA) $ 0.481226 2.68%
  • avalanche-2Avalanche (AVAX) $ 34.37 1.19%
  • bitcoinBitcoin (BTC) $ 42,977.00 0.18%
    ethereumEthereum (ETH) $ 2,365.53 1.12%
    tetherTether (USDT) $ 1.00 0.2%
    bnbBNB (BNB) $ 302.66 0.19%
    solanaSolana (SOL) $ 95.44 1.28%
    xrpXRP (XRP) $ 0.501444 0.1%
    usd-coinUSDC (USDC) $ 0.996294 0.34%
    staked-etherLido Staked Ether (STETH) $ 2,367.26 1.4%
    cardanoCardano (ADA) $ 0.481226 2.68%
    avalanche-2Avalanche (AVAX) $ 34.37 1.19%
image-alt-1BTC Dominance: 58.93%
image-alt-2 ETH Dominance: 12.89%
image-alt-3 BTC/ETH Ratio: 26.62%
image-alt-4 Total Market Cap 24h: $2.51T
image-alt-5Volume 24h: $144.96B
image-alt-6 ETH Gas Price: 5.1 Gwei
 

MORE FROM SPONSORED

LIVE Web3 News

 

ARTICLE INFORMATION

South Korea crypto regulation

South Korea’s crypto regulation evolves with new KYC laws and tokenized asset reforms

https://icn.live/wp-content/uploads/2025/06/sk.mp3
  • by ICN.live
Rami Al-Saadi

South Korea’s crypto regulation is entering a new phase with fresh KYC mandates and institutional reforms.

The country is making headlines as it repositions itself in the global digital asset market.

Recently, the Financial Intelligence Unit revealed over 600,000 potential KYC breaches at Upbit. In response, South Korea introduced strict Know Your Customer (KYC) requirements for both exchanges and banks. These steps aim to prevent fraud while paving the way for institutional involvement.

The Financial Services Commission (FSC) stated that these measures will build trust. They also prepare the market for lifting the long-standing ban on institutional crypto investments. This marks a big shift from policies held since 2017.

Institutional Crypto Is Coming Back

South Korea’s crypto regulation is also moving toward legalizing tokenized securities. The National Assembly is reviewing a bill expected to pass after the presidential election. If approved, this would allow blockchain-based securities to integrate into the traditional financial system.

The proposed bill outlines how tokenized assets can be issued and traded. It gives legal status to these digital instruments. This would mark a major step in legitimizing and securing crypto markets.

As part of this shift, World Vision Korea recently sold 0.55 ETH using a corporate K-Bank account linked to Upbit. This small but symbolic transaction shows how nonprofits and businesses can operate in this evolving ecosystem.

ANOTHER MUST-READ ON ICN.LIVE:

Arkham Intelligence’s wallet analysis reveals hidden Bitcoin stash linked to Strategy

The Protection Act and Political Will

The second phase of the Virtual Asset User Protection Act is now rolling out. This section targets stablecoins and unfair trading. Exchanges must meet stricter standards to operate legally. The goal is to protect users and ensure fair market behavior.

Both major political parties—the Democratic Party of Korea and the People Power Party—support these changes. The DPK backs Bitcoin spot ETFs, while the PPP proposes a digital asset promotion committee.

South Korea Crypto Regulation May Lead the Way in Asia

South Korea’s crypto regulation is not just about security. It’s also about creating growth. By Q3 2025, companies and pro investors will likely gain legal access to trade crypto again. This will end a seven-year ban.

If these reforms work, South Korea may lead Asia in digital asset innovation. Its laws could become a global standard for how to balance investor protection with market expansion.

SHARE

What is changing in South Korea’s crypto regulation?

South Korea is overhauling its crypto regulation with stronger KYC laws, legal pathways for institutional investment, and new rules on tokenized securities. These reforms aim to make the market safer and more accessible. For example, the Financial Intelligence Unit recently identified over 600,000 KYC violations at Upbit. In response, the government is tightening regulations to increase transparency and trust. The National Assembly is also reviewing a bill to legalize blockchain-based securities. If passed, these new laws will allow businesses and professional investors to re-enter the crypto space legally, ending a ban that’s been in place since 2017.

When can institutional investors start trading crypto again in South Korea?

Institutional investors are expected to return to crypto trading in South Korea by Q3 2025. This timeline follows new KYC implementations and the potential passage of tokenized security legislation. The Financial Services Commission (FSC) is leading the initiative to restore institutional access. These reforms are designed to create a more mature market structure. Alongside new investor protection rules, the government aims to ensure the ecosystem is both secure and investor-friendly. This marks a significant shift from the country’s previous stance, which kept institutions out of the crypto space since 2017.

What is the Virtual Asset User Protection Act?

The Virtual Asset User Protection Act is a two-phase regulatory framework introduced to secure South Korea’s crypto ecosystem. The first phase established basic operating standards. The second phase, currently underway, focuses on regulating stablecoins and combating unfair market practices. It places stricter requirements on exchanges to protect user funds and ensure honest trading behavior. By tightening controls, the law aims to prevent incidents like market manipulation or token price rigging. This comprehensive act forms the backbone of South Korea’s evolving crypto regulation and signals its commitment to responsible crypto innovation.

Are political parties in South Korea aligned on crypto development?

Yes, both major political parties in South Korea support the development of the crypto industry. The Democratic Party of Korea (DPK) has pledged to introduce Bitcoin spot ETFs to attract institutional investors. Meanwhile, the People Power Party (PPP) is pushing for the creation of a digital asset promotion committee and a defined tax structure. Regardless of which party wins the next election, the crypto industry stands to benefit. This rare bipartisan agreement shows how important crypto has become in shaping South Korea’s financial future. It also reassures investors about policy stability and long-term market growth.

FEATURED

EVENTS

Days
Hr
Min
Sec
 

ICN TALKS EPISODES