South Korea is implementing new cryptocurrency regulations set to take effect in June 2025, focusing on investor protection and promoting institutional involvement. The regulations encompass both non-profit organizations and crypto exchanges, with stricter customer verification requirements coming into play for these entities. This move aligns with South Korea’s broader strategy of regulating its crypto market ahead of anticipated institutional entry.
The Financial Services Commission (FSC) has outlined specific changes for both entities. Non-profits will now require five years of audited financial history to engage with virtual assets, while exchanges are restricted from selling user fees exceeding a daily cap of typically no more than 10% of the planned amount. These new regulations reflect South Korea’s commitment to balancing innovation and investor protection as it moves towards an increasingly regulated crypto market, setting it up for increased institutional investment.
Experts predict these changes will lead to greater liquidity and a surge in interest from institutions, paving the way for South Korea to become a center of blockchain innovation.