Korean Crypto Regulation

When navigating Korean crypto regulation, you’re dealing with South Korea’s digital‑asset framework, the set of laws that control crypto exchanges, tax reporting, and anti‑money‑laundering rules. Also called South Korean crypto policy, it decides who can launch a token, how traders file taxes, and which entities need a government licence.

Key pillars that shape the market

The first pillar is Crypto exchange licensing, the approval process required by the Financial Services Commission for any platform that lets users buy, sell or swap digital coins. Licensing demands a minimum capital buffer, regular security audits, and a clear segregation of customer funds. The second pillar, AML/KYC compliance, the mandatory identity verification and transaction monitoring that prevents money‑laundering and terrorist financing, forces every exchange to enforce real‑name verification, set transaction thresholds, and report suspicious activity to the Financial Intelligence Unit. Finally, Crypto tax rules, the obligations for reporting capital gains, income from staking, and gifting of digital assets to the National Tax Service dictate a 20 % tax on gains, require quarterly filing for high‑frequency traders, and treat airdropped tokens as taxable income at fair market value. Together, these pillars create a regulatory loop where licensing enables oversight, AML/KYC safeguards the system, and tax policy shapes market behavior.

Understanding these three building blocks helps you stay ahead of compliance deadlines, avoid costly penalties, and make smarter trading decisions. Below you’ll find a curated list of articles that break down each aspect in plain language—whether you’re checking the latest licensing updates, learning how to set up AML/KYC procedures, or figuring out the tax impact of a new token airdrop. Dive in to see how South Korea’s rules affect real‑world crypto activities and get actionable tips you can apply right now.