D
Digital Asset Intelligence
Regulation · Compliance · Risk
Suggest an edit
← Country Intelligence Center
🇰🇷

South Korea

Asia · Developing

South Korea has one of the world's most active crypto retail markets and now one of its more assertive supervisors. VAUPA Phase 1 criminalised market abuse and locked down custody standards; Phase 2 — currently in draft — will decide whether KRW stablecoins can operate onshore and how token issuers are regulated.

DAI Methodology v2.1 Last updated June 2026
DAI Readiness Score™
76.8
out of 100
Regulatory & Enforcement Agencies

Regulatory agencies for South Korea — being verified. Submit a suggestion →

Regulatory status

Developing

Source unavailable
Primary regulator

Financial Services Commission (FSC) · Financial Supervisory Service · FIU

Source
Licensing requirements

Specified Financial Information Act (VASP registration); Virtual Asset User Protection Act (Phase 1 live July 2024); Phase 2 (issuer conduct, stablecoins) in draft.

Source unavailable
AML requirements

SFIA + FIU rules; real-name bank account mandate for exchange fiat on/off-ramp; Travel Rule via CODE alliance since March 2022.

Source unavailable
Travel Rule status

Implemented — KRW 1m threshold; single-counterparty messaging via CODE / VerifyVASP.

Source unavailable
Tax treatment

20% tax on gains above KRW 2.5m postponed to Jan 2027; corporate rates apply currently.

Source unavailable
Consumer protection

VAUPA — user asset segregation, cold-wallet ratio ≥80%, insurance/reserve requirement, unfair-trading criminal penalties.

Source unavailable
Key legislation
2023
Virtual Asset User Protection Act

Phase 1 conduct rules for exchanges; market abuse criminalised.

Source unavailable
2020
Specified Financial Information Act

Original VASP registration and AML framework.

Source unavailable
Recent developments
2026-05-16
FSC unveils Phase 2 draft — stablecoin and issuer rules

KRW-referenced stablecoins would require FSC authorisation; disclosure standards for token issuers.

Source
2026-02-08
Upbit operator hit with KRW 26bn penalty

AML/KYC failures over 2022-2024 period; largest domestic crypto penalty.

Source unavailable
Primary Sources & Official Documents
  1. 01
    FATF Recommendations (including Recommendation 15 — new technologies)
    Financial Action Task Force · Updated periodically
    https://www.fatf-gafi.org/en/topics/fatfrecommendations.html
  2. 02
    FATF Targeted Update on Implementation of the Standards on VAs and VASPs
    Financial Action Task Force · Annual
    https://www.fatf-gafi.org/en/publications/Fatfrecommendations.html
  3. 03
    High-Risk and Other Monitored Jurisdictions (grey and black lists)
    Financial Action Task Force · Updated three times a year
    https://www.fatf-gafi.org/en/publications/High-risk-and-other-monitored-jurisdictions.html

Never miss a change

Track South Korea

Get an email when South Korea publishes a new rulemaking, licensing decision, enforcement action, or sanctions designation. Every alert links to the primary source.

Jurisdictions (leave blank for all)
Topics (leave blank for all)
Delivery

Free. Unsubscribe in one click from any alert.

Page history
Suggest an edit →

Loading revision history…

Spotted something out of date? Practitioner corrections are reviewed against the cited source.

Suggest an edit
Sources:FSC VAUPA rules · FIU VASP register
Professional disclaimerDigital Asset Intelligence content is provided for informational purposes only and does not constitute legal, tax, investment, or compliance advice. Regulatory positions change frequently; verify all material with primary sources and qualified counsel before relying on it for licensing, supervisory, or compliance decisions.