South Korea — crypto regulation

Status: legal · Last reviewed 2026-11-05

The Virtual Asset User Protection Act (in force Jul 2024) is the main framework, with the FSC as primary regulator, mandatory VASP registration with the KoFIU and a real-name bank account rule for all crypto trading. The second-phase Digital Asset Basic Act, covering won stablecoins, VASP licensing, listing and disclosure, has been repeatedly delayed by a dispute over whether banks must hold 51% of stablecoin issuers. The government planned to submit its bill in Nov 2026 and aim for passage by year-end. The FSC plans Capital Markets Act changes to allow spot bitcoin ETFs. A 22% crypto gains tax is set for Jan 2027, but lawmakers are weighing a delay to 2029. AML enforcement is tightening: Bithumb was fined ₩36.8B and 27 unregistered offshore exchanges are being blocked.

Legislation