South Korea aims to expand its cryptocurrency market to international investors, a move that hinges on new anti-money laundering (AML) regulations. The country’s financial regulatory body is exploring ways to broaden global participation in the crypto sector. This initiative was proposed by King Sung-ji, head of the Financial Services Commission’s crypto division, during a seminar at the National Assembly. Current restrictions limit foreign investor participation due to stringent Know Your Customer (KYC) regulations for service providers and capital account controls that constrain portfolio investments. However, these limitations could be relaxed if new regulations are implemented, potentially fueled by increased international interest. Peter Chung, head of Presto Research, advocates for allowing foreign investors to trade cryptocurrencies on Korean exchanges, arguing it would alleviate existing restrictions, invigorate the market, and drive growth. Financial regulators in South Korea may revise AML rules to attract international crypto investors contingent on exchanges meeting required standards. The Financial Intelligence Unit (FIU) is actively working to strengthen these AML regulations, conducting examinations and sharing inspection plans in March 2025. Notably, South Korea has been combating rising cyber threats and theft within the crypto sector while striving to secure its position as a leading player. This involves implementing stricter regulatory measures such as requiring Google to restrict access to unregistered exchanges like KuCoin, MEXC, Phemex, XT, CoinEx, BitMart, and Poloniex. South Korea’s focus on AML regulations and easing restrictions on foreign investment is geared towards fostering global prominence in the crypto market. These moves are coupled with efforts to build a robust regulatory framework to combat illicit activities and protect investors.