South Korea is set to implement new regulations for its cryptocurrency market starting June 1. These rules will apply to both crypto exchanges and nonprofit organizations involved in digital assets.
New Rules for Nonprofits and Crypto Exchanges
Effective June 1, 2025, new rules from the 4th Virtual Asset Committee of South Korea require nonprofits and crypto exchanges to comply with stricter standards regarding sales practices and token circulation management.
Goals of the Updated Regulations
A key focus of these updated rules is to prevent so-called 'listing beams'—sudden, unjustified price spikes often following new token listings. Exchanges must implement stricter listing procedures and review processes.
Stricter AML Controls
South Korea is also tightening its AML controls, requiring enhanced monitoring of transactions and wallet activities. Platforms will need to provide clearer disclosures and work closely with financial regulators.
By implementing these regulations, South Korea signals its intent to balance innovation with investor protection, setting an example for other nations facing similar issues in digital finance.
