South Korea is introducing new cryptocurrency regulations, tightening anti-money laundering and know-your-customer requirements. These changes come as the presidential elections approach.
New Rules for Crypto Exchanges and NGOs
According to the latest filing by the Financial Services Commission (FSC), from June 2025, registered crypto exchanges and designated non-profit organizations will be allowed to sell their crypto holdings. Additional checks will be required for transactions with institutional clients, including assessing the origin of funds.
Expansion of Institutional Access and Market Oversight
Publicly listed companies and professional investors will be welcome to participate in crypto trading in the latter half of 2025. Further anti-money laundering requirements will be introduced, along with mechanisms to monitor systemic risks. This will be part of the new regulatory framework for cryptocurrencies and stablecoins.
Crypto Becomes a Key Election Issue
The upcoming presidential elections in South Korea have turned crypto into a significant policy issue. Leading candidates are advocating for the legalization of Bitcoin ETFs and the establishment of a stablecoin market, which may help reduce capital outflows. However, concerns remain about potential economic impacts of introducing stablecoins into the financial system.
The changes in cryptocurrency regulation in South Korea highlight the growing interest in digital assets and their integration into the country's financial system, and this is expected to impact markets and policies in the future.
