South Korea is implementing new cryptocurrency regulations for exchanges and non-profit organizations, aimed at boosting market transparency and security while encouraging institutional investment. The changes take effect in June 2025. The Financial Services Commission (FSC) introduced these regulations to address concerns regarding the unregulated nature of crypto markets. Key regulatory points include:
* **Non-profits:** Will be required to maintain five years of audited financial history and establish Donation Review Committees.
* **Exchanges:** Can only liquidate user fees for operational costs, with daily sales capped at 10% of the planned amount.
These regulations aim to enhance the country’s market integrity by promoting transparency in crypto transactions and allowing broader access to the cryptocurrency market through crypto ETFs by the end of 2025.
This move reflects South Korea’s growing efforts to position itself as a leader in blockchain innovation and attract institutional investment. The country intends to leverage this move to further solidify its role as a major player in the global digital currency ecosystem.