#SouthKoreaCryptoPolicy

South Korea has a strict yet evolving regulatory framework for cryptocurrencies. The Financial Services Commission (FSC) oversees the industry, enforcing compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) guidelines. Key regulations include ¹ ²:

- *Registration Requirements*: Crypto exchanges must register with the FSC and collaborate with local banks for real-name verification accounts.

- *Asset Protection*: Exchanges must store at least 80% of users' assets in cold wallets and have insurance or reserves for hacking or network failures.

- *Unfair Transaction Regulations*: Prohibitions on undisclosed material information, market manipulation, and fraudulent activities.

- *Taxation*: A 20% tax on crypto gains exceeding 2.5 million won ($1,800) was initially planned but has been delayed until 2028.

The FSC also supervises and sanctions Virtual Asset Service Providers (VASPs), ensuring compliance with regulations ².