{
 "jurisdiction_id": "KR",
 "jurisdiction": "South Korea",
 "url": "https://cryptoassets.gi/jurisdictions/south-korea/",
 "generator": "render_jid v13.3.0",
 "date_modified": "2026-08-17",
 "schema_version": "crypto-v2.0.0",
 "counts": {
  "modules": 8,
  "sourced_findings": 30,
  "source_register": 44
 },
 "modules": [
  {
   "code": "crypto_licensing",
   "name": "Crypto Licensing",
   "confidence": null,
   "moved_this_cycle": false,
   "url": "https://cryptoassets.gi/jurisdictions/south-korea/#crypto-licensing-crypto-licensing",
   "standing_position": "South Korea's baseline VASP registration and conduct-of-business regime under the FTRA and VAUPA is firmly in force and enforced, including bank real-name partnership and ISMS certification requirements that now also condition continued Korean Google Play listing for exchange apps. A comprehensive second-tier licensing overlay under the proposed Digital Asset Basic Act (DABA), covering trading, brokerage, custody, advisory and a provisionally-agreed 20% ownership cap on exchange shareholders, remains unenacted with H2 2026 as the next plausible checkpoint.",
   "findings": [
    {
     "finding": "VASP registration with bank real-name partnership and ISMS security certification",
     "instrument_type": "regulator",
     "source": "Korea Financial Intelligence Unit (FIU)",
     "source_url": "https://www.coindesk.com/policy/2021/04/01/s-koreas-crypto-rules-might-only-help-the-big-4-exchanges",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "demonstration of FIU VASP registration to remain listed on the Korean Google Play store",
     "instrument_type": "none",
     "source": "Google Play",
     "source_url": "https://www.theblock.co/post/385892/google-play-ban-south-korea",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "licensing, registration and reporting requirements for digital asset trading, brokerage, custody and advisory businesses",
     "instrument_type": "regulation",
     "source": "Digital Asset Basic Act (DABA) proposal",
     "source_url": "https://www.coindesk.com/policy/2026/04/08/south-korea-proposes-cryptocurrency-law-with-bank-style-rules-for-stablecoins",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "20% cap on major-shareholder stakes in crypto exchanges under forthcoming DABA, with exceptions to 34% and a 3-year grace period for incumbents",
     "instrument_type": "regulator",
     "source": "FSC / ruling party negotiators",
     "source_url": "https://www.theblock.co/post/392169/south-korean-authorities-settle-ownership-limit",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    }
   ]
  },
  {
   "code": "token_classification",
   "name": "Token Classification",
   "confidence": null,
   "moved_this_cycle": false,
   "url": "https://cryptoassets.gi/jurisdictions/south-korea/#token-classification-token-classification",
   "standing_position": "Security tokens are governed by the FSC's 2023 Token Securities Guidelines and, prospectively, by Capital Markets Act/Electronic Securities Act amendments enacted 15 January 2026 but not effective until approximately February 2027 (corrected this cycle from an initial in_force mislabeling). NFT classification remains case-by-case based on fungibility, fractionalizability and payment capability, and the classification of tokenized stocks as securities versus virtual assets remains unresolved pending FSC concurrence with the Ministry of Economy and Finance.",
   "findings": [
    {
     "finding": "digital assets corresponding to securities under the Capital Markets Act to be issued/distributed under securities regulation, per 2023 Token Securities Guidelines",
     "instrument_type": "regulator",
     "source": "Financial Services Commission (FSC)",
     "source_url": "https://www.coindesk.com/policy/2023/02/06/south-korea-issues-guidelines-for-regulating-security-tokens-as-legislation-looms",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "amendments to the Capital Markets Act and Electronic Securities Act institutionalizing issuance/trading of tokenized (security) instruments via distributed ledger technology",
     "instrument_type": "law",
     "source": "National Assembly of South Korea",
     "source_url": "https://practiceguides.chambers.com/practice-guides/blockchain-crypto-assets-2026/south-korea/trends-and-developments",
     "source_tier": "3",
     "retrieved_at": "2026-06-11"
    },
    {
     "finding": "NFTs as ordinary virtual assets on a case-by-case basis where mass-produced, fungible, fractionalizable, or payment-capable; low-value non-transferable NFTs remain outside crypto regulation",
     "instrument_type": "guidance",
     "source": "Financial Services Commission (FSC)",
     "source_url": "https://www.theblock.co/post/299196/south-korea-new-nft-guideline",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "tokenized stocks as securities rather than virtual assets, pending FSC concurrence before Capital Markets Act tax/disclosure treatment applies",
     "instrument_type": "regulator",
     "source": "Ministry of Economy and Finance",
     "source_url": "https://www.theblock.co/post/404580/south-korea-finance-ministry-says-tokenized-stocks-are-securities-not-crypto-assets-opening-door-to-taxes-report",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    }
   ]
  },
  {
   "code": "on_chain_activity_regime",
   "name": "On-Chain Activity Regime",
   "confidence": null,
   "moved_this_cycle": false,
   "url": "https://cryptoassets.gi/jurisdictions/south-korea/#on-chain-activity-regime-on-chain-activity-regime",
   "standing_position": "Only centralized-exchange crypto lending is directly regulated, via an FSC/DAXA guideline capping interest at 20% and banning leveraged lending beyond collateral value for top-20 assets. Staking, DeFi, mining, node operation and validator activity remain wholly unaddressed by Korean statute, a persistent gap pending DABA implementation.",
   "findings": [
    {
     "finding": "crypto lending interest at 20%, bans leveraged lending exceeding collateral value, limited to top-20 market-cap assets",
     "instrument_type": "guidance",
     "source": "FSC / Digital Asset Exchange Alliance (DAXA)",
     "source_url": "https://www.theblock.co/post/369574/south-korea-crypto-lending-guideline",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "a dedicated statutory or regulatory framework for staking, DeFi, mining, node operation or validator activity",
     "instrument_type": "jurisdiction",
     "source": "South Korea (VAUPA/FTRA regime)",
     "source_url": "https://www.coindesk.com/business/2026/01/02/usd110-billion-in-crypto-left-south-korea-in-2025-owing-to-strict-trading-rules",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    }
   ]
  },
  {
   "code": "stablecoin_regime",
   "name": "Stablecoin Regime",
   "confidence": null,
   "moved_this_cycle": false,
   "url": "https://cryptoassets.gi/jurisdictions/south-korea/#stablecoin-regime-stablecoin-regime",
   "standing_position": "South Korea has no binding stablecoin issuance framework; KRW-pegged pilots remain non-circulating proof-of-concept deployments. The proposed DABA stablecoin-issuer authorization regime -- covering capital, reserve custody, redemption rights and disclosure standards -- remains deadlocked over a Bank of Korea demand for majority-bank ownership of issuers versus the FSC's more flexible stance, with no systemic-designation regime for large stablecoins yet drafted.",
   "findings": [
    {
     "finding": "a regulatory framework for stablecoins; KRW-pegged token launches (e.g. BDACS KRW1) remain non-circulating proof-of-concept",
     "instrument_type": "jurisdiction",
     "source": "South Korea",
     "source_url": "https://www.theblock.co/post/371173/south-korea-first-stablecoin-avalanche",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "authorization for entities issuing value-linked digital assets (including fiat/RWA-pegged stablecoins), meeting capital, operational and reserve-plan requirements",
     "instrument_type": "regulation",
     "source": "Digital Asset Basic Act (DABA) proposal",
     "source_url": "https://www.coindesk.com/policy/2026/04/08/south-korea-proposes-cryptocurrency-law-with-bank-style-rules-for-stablecoins",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "stablecoin issuers to manage reserves in bank deposits or government bonds and entrust 100% of outstanding reserves with bank custodians",
     "instrument_type": "regulation",
     "source": "DABA government proposal",
     "source_url": "https://www.coindesk.com/policy/2025/12/30/south-korea-s-long-awaited-crypto-law-stalls-over-who-can-issue-stablecoins",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "value-linked digital assets as requiring issuer authorization, refund reserves and redemption obligations to protect holders",
     "instrument_type": "regulation",
     "source": "DABA government proposal",
     "source_url": "https://www.coindesk.com/policy/2026/04/08/south-korea-proposes-cryptocurrency-law-with-bank-style-rules-for-stablecoins",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "disclosure, terms-of-service and advertising standards on digital asset service providers, including stablecoin issuers, comparable to traditional finance",
     "instrument_type": "regulation",
     "source": "DABA government proposal",
     "source_url": "https://www.coindesk.com/policy/2025/12/30/south-korea-s-long-awaited-crypto-law-stalls-over-who-can-issue-stablecoins",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "foreign-issued stablecoins (e.g. USDC) in South Korea only if licensed and operating through a local branch or subsidiary",
     "instrument_type": "regulation",
     "source": "Earlier FSC draft stablecoin proposal",
     "source_url": "https://www.coindesk.com/policy/2025/12/30/south-korea-s-long-awaited-crypto-law-stalls-over-who-can-issue-stablecoins",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "a systemic-designation regime for large stablecoins",
     "instrument_type": "jurisdiction",
     "source": "South Korea (current DABA drafts)",
     "source_url": "https://www.coindesk.com/policy/2025/12/30/south-korea-s-long-awaited-crypto-law-stalls-over-who-can-issue-stablecoins",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    }
   ]
  },
  {
   "code": "consumer_protection",
   "name": "Consumer Protection",
   "confidence": null,
   "moved_this_cycle": false,
   "url": "https://cryptoassets.gi/jurisdictions/south-korea/#consumer-protection-consumer-protection",
   "standing_position": "Core VAUPA custody segregation (80% cold storage), bank-delegated cash custody, and insurance/reserve-fund protections are in force and enforced. An April 2026 mandatory withdrawal-delay order targets voice-phishing fraud, while a drafted 5%-of-equity institutional crypto-allocation cap remains at guideline stage.",
   "findings": [
    {
     "finding": "safekeeping of at least 80% of user crypto deposits in segregated cold storage",
     "instrument_type": "law",
     "source": "Virtual Asset User Protection Act (VAUPA)",
     "source_url": "https://www.theblock.co/post/306169/south-korea-inaugural-crypto-law-goes-into-full-effect",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "exchanges to delegate cash-deposit custody to a licensed local bank and maintain cryptocurrency reserves matched to customer deposits",
     "instrument_type": "law",
     "source": "Virtual Asset User Protection Act (VAUPA)",
     "source_url": "https://www.theblock.co/post/306169/south-korea-inaugural-crypto-law-goes-into-full-effect",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "crypto service providers to enroll in adequate insurance or establish a reserve fund against hacks or liquidity crises",
     "instrument_type": "law",
     "source": "Virtual Asset User Protection Act (VAUPA)",
     "source_url": "https://www.theblock.co/post/306169/south-korea-inaugural-crypto-law-goes-into-full-effect",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "all domestic cryptocurrency exchanges to adopt a unified mandatory withdrawal-delay system to counter voice-phishing fraud",
     "instrument_type": "regulator",
     "source": "FSC / Financial Supervisory Service (FSS)",
     "source_url": "https://www.coindesk.com/policy/2026/04/08/south-korea-proposes-cryptocurrency-law-with-bank-style-rules-for-stablecoins",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "guidelines capping listed-company and professional-investor crypto allocations at 5% of equity capital annually, limited to the top 20 cryptocurrencies by market value",
     "instrument_type": "guidance",
     "source": "Financial Services Commission (FSC)",
     "source_url": "https://www.coindesk.com/markets/2026/01/12/south-korea-proposes-5-limit-for-listed-firms-crypto-exposure",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    }
   ]
  },
  {
   "code": "tax_treatment",
   "name": "Tax Treatment",
   "confidence": null,
   "moved_this_cycle": false,
   "url": "https://cryptoassets.gi/jurisdictions/south-korea/#tax-treatment-tax-treatment",
   "standing_position": "The 2027 crypto income tax (20%/22% 'other income' above a 2.5 million won deduction) is enacted but not yet effective, and faces an active repeal bill referred to a National Assembly subcommittee on 29 July 2026 -- the third such delay effort since 2022. A separate, unresolved question is whether tokenized stocks will be taxed as securities under the Capital Markets Act pending FSC concurrence with the Ministry of Economy and Finance.",
   "findings": [
    {
     "finding": "income from transferring or lending crypto as 'other income' at 20% national tax (22% incl. local tax) on gains above an annual 2.5 million won deduction, effective January 1, 2027",
     "instrument_type": "law",
     "source": "Income Tax Act (virtual asset income provisions)",
     "source_url": "https://www.coindesk.com/policy/2026/07/30/south-korea-s-long-delayed-crypto-tax-set-to-start-in-2027",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "a bill to abolish the scheduled 2027 crypto income tax to a National Assembly subcommittee, referred July 29, 2026",
     "instrument_type": "regulation",
     "source": "National Assembly subcommittee",
     "source_url": "https://www.coindesk.com/policy/2026/07/30/south-korea-s-long-delayed-crypto-tax-set-to-start-in-2027",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "an AI-based system to track and analyze crypto transactions ahead of the planned 2027 tax start",
     "instrument_type": "regulator",
     "source": "National Tax Service (NTS)",
     "source_url": "https://www.theblock.co/amp/post/394298/south-korean-lawmakers-abolish-crypto-tax",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "tokenized stocks as securities, potentially opening Capital Markets Act taxation as early as H2 2026 if the FSC concurs, including for tokens issued via overseas platforms",
     "instrument_type": "regulator",
     "source": "Ministry of Economy and Finance",
     "source_url": "https://www.theblock.co/post/404580/south-korea-finance-ministry-says-tokenized-stocks-are-securities-not-crypto-assets-opening-door-to-taxes-report",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    }
   ]
  },
  {
   "code": "cross_border_transfer",
   "name": "Cross-Border Transfer",
   "confidence": null,
   "moved_this_cycle": false,
   "url": "https://cryptoassets.gi/jurisdictions/south-korea/#cross-border-transfer-cross-border-transfer",
   "standing_position": "The FTRA Travel Rule (in force since March 2022, threshold 1,000,000 won) is set for possible threshold removal per FSC plans. A May 2026 Foreign Exchange Transactions Act amendment adds a cross-border virtual-asset-transfer-business registration requirement, enacted but with an effective date not yet established from available sourcing; the Bank of Korea has separately planned (not yet in force) monthly cross-border transaction reporting.",
   "findings": [
    {
     "finding": "collection and storage of sender/recipient information by exchanges for crypto transfers exceeding 1,000,000 won (FATF Travel Rule)",
     "instrument_type": "regulation",
     "source": "FTRA Travel Rule / Korea FIU",
     "source_url": "https://www.theblock.co/post/349411/south-korea-local-crypto-market-foreign-investors-aml",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "to expand Travel Rule requirements to cover all crypto transactions, removing the 1,000,000 won threshold",
     "instrument_type": "regulator",
     "source": "Financial Services Commission (FSC)",
     "source_url": "https://www.theblock.co/amp/post/400544/south-korea-tightens-oversight-of-firms-moving-crypto-overseas-report",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "entities conducting cross-border 'virtual asset transfer business' (including exchanges and custody firms) to register with the Minister of Economy and Finance",
     "instrument_type": "law",
     "source": "Foreign Exchange Transactions Act (amended)",
     "source_url": "https://www.theblock.co/amp/post/400544/south-korea-tightens-oversight-of-firms-moving-crypto-overseas-report",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    },
    {
     "finding": "to require monthly pre-registration/reporting of cross-border stablecoin/crypto transactions to curb FX-related crypto crime",
     "instrument_type": "regulator",
     "source": "Bank of Korea",
     "source_url": "https://www.theblock.co/post/322983/south-korea-reporting-mandate-for-cross-border-crypto-transactions",
     "source_tier": "4",
     "retrieved_at": "2026-08-03"
    }
   ]
  },
  {
   "code": "aml_cft_regime",
   "name": "AML/CFT Regime",
   "confidence": null,
   "moved_this_cycle": false,
   "url": "https://cryptoassets.gi/jurisdictions/south-korea/#aml-cft-regime-aml-cft-regime",
   "standing_position": "This module is intentionally unpopulated with original claims. AML/CFT surface coverage for Korea -- including Travel Rule administration and FIU KYC/STR enforcement -- is subscribed from the financial-integrity monitor pending fleet-wide consolidation, and is carried here as a placeholder only.",
   "findings": []
  }
 ]
}