South Korea

Regulated Partly Confirmed Verified August 24, 2026

South Korea requires VASP registration and AML compliance, while the Virtual Asset User Protection Act regulates custody, user deposits, unfair trading and market supervision.

Financial Services Commission / Korea Financial Intelligence Unit

Total Laws (incl. applicable EU-wide)

Effective Laws

At a Glance

Is holding crypto allowed?

Allowed

Is crypto trading allowed?

Regulated

Is P2P trading allowed?

Allowed

Are crypto payments allowed?

Restricted

Is crypto legal tender?

Is mining allowed?

Allowed

Is staking allowed?

Regulated

Is DeFi participation allowed?

Regulated

Are stablecoins allowed or regulated?

Regulated

Activity Status Matrix

Activity	Status	Details
Holding Crypto	Allowed	Is holding crypto allowed?
Crypto Trading	Regulated	Is crypto trading allowed?
P2P Trading	Allowed	Is P2P trading allowed?
Crypto Payments	Restricted	Are crypto payments allowed?
Legal Tender	No	Is crypto legal tender?
Mining	Allowed	Is mining allowed?
Staking	Regulated	Is staking allowed?
DeFi	Regulated	Is DeFi participation allowed?
Stablecoins	Regulated	Are stablecoins allowed or regulated?
NFTs	Regulated	Are NFTs allowed or regulated?
Token Launches	Regulated	Are token launches allowed?
Crypto Advertising	Regulated	Is crypto advertising allowed?
Banking Access	Regulated	Do crypto businesses have banking access?

Regulation Overview

South Korea has an active first-stage virtual-asset regime. VASPs must register with the Korea Financial Intelligence Unit under the Act on Reporting and Using Specified Financial Transaction Information and comply with AML, information-security and banking requirements. The Virtual Asset User Protection Act took effect on 19 July 2024 and governs safeguarding of user deposits and assets, insurance or reserves, unfair trading, market surveillance and supervisory powers. A broader second-stage framework for issuance, stablecoins and market structure has continued to develop. Corporate participation and cross-border rules are being phased in under government policy.

Tax Information

The dedicated individual virtual-asset gains tax is scheduled to begin on 1 January 2027 under the current timetable. Ordinary business and corporate income rules continue to apply before and after that date.

Individual Tax Treatment

Under the scheduled 2027 regime, annual net virtual-asset gains above KRW 2.5 million are expected to face 20% national tax plus local income tax. The start date and final implementation details should be rechecked before filing because the regime has been postponed previously.

Business Tax Treatment

Corporate taxpayers apply ordinary corporate-income rules to virtual-asset income and gains. Regulated financial and VASP activities also have accounting, reporting and AML obligations.

National Tax Service

Business & Licensing

VASPs must register with KoFIU. Registration screening includes information-security certification and fit-and-proper requirements; won-market exchanges also depend on real-name banking arrangements.

AML / KYC Requirements

VASPs are subject to KYC, suspicious-transaction reporting, transaction monitoring, travel-rule controls, recordkeeping and KoFIU supervision.

Primary Regulator

Financial Services Commission / Korea Financial Intelligence Unit

fsc.go.kr

Crypto Laws & Regulations in South Korea

Acteffective

South Korea Virtual Asset User Protection Act

Act on the Protection of Virtual Asset Users

Published: July 18, 2023Effective: July 19, 2024Ref: Act No. 19563

Protects user deposits and assets and prohibits unfair virtual-asset trading practices.

Consumer ProtectionCustodyMarket AbuseEnforcement

Official Source

Acteffective

South Korea VASP Registration Regime

Specified Financial Transaction Information Act VASP regime

Published: March 25, 2021Effective: September 24, 2021Ref: KoFIU VASP Regime

Requires VASPs to register with KoFIU and comply with AML duties.

AML/KYCLicensingExchanges

Official Source

Regulatory Timeline

January 1, 2026

South Korea individual crypto-gains tax scheduled to begin · Tax DeadlineThe dedicated virtual-asset gains tax is scheduled to begin; recheck before publication because it has been postponed previously.Source