South Korea | Crypto

Crypto trading may be huge in South Korea, but just over the border, crypto hacking accounts for around 13.5% of North Korea’s GDP.

Crypto trading may be huge in South Korea, but just over the border, crypto hacking accounts for around 13.5% of North Korea’s GDP.

Crypto trading may be huge in South Korea, but just over the border, crypto hacking accounts for around 13.5% of North Korea’s GDP.

Regulators gain wider discretion to vet shareholders, finances and controls as South Korea tightens crypto market access. South Korea’s National Assembly has approved an overhaul of the country’s crypto licensing regime, tightening entry requirements for virtual asset service providers (VASPs) and expanding scrutiny to include controlling shareholders. On Thursday, lawmakers passed an amendment to the Act on Reporting and Using Specified Financial Transaction Information, a cornerstone of Korea’s Anti-Money Laundering (AML) framework for digital assets. The committee substitute bill was approved at a plenary session and is expected to take effect six months after the law is enacted. The new rules widen background checks for crypto firms applying to operate in South Korea. Regulators will now vet not just company executives but also major shareholders. The list of red flags has expanded beyond financial crimes to include offenses such as drug trafficking, tax evasion, fair-trade violations, serious economic cr...

South Korea's Democratic Party advances legislation requiring stablecoin issuers to maintain 5 billion won ($3.5 million) in capital and establishing an inter-ministerial Virtual Asset Committee, though Bank of Korea Governor Lee Chang-yong warns dollar-pegged tokens could weaken capital controls during market stress. The post South Korea’s New Crypto Bill Sets $3.5M Minimum for Stablecoin Issuers – Can It Pass? appeared first on Cryptonews.

The Financial Services Commission chief says ownership limits are still under negotiation as lawmakers debate the Digital Asset Basic Act ahead of a mid-February deadline. South Korea’s top financial regulator said crypto exchanges should face ownership limits similar to those applied to securities markets, signaling a harder public stance on governance reforms under the country’s proposed Digital Asset Basic Act. According to a report by The Korea Times, the Financial Services Commission (FSC) Chair Lee Eog-weon said licensed crypto exchanges should no longer be treated as ordinary private companies but as entities with public-infrastructure characteristics.  Lee’s comments come as the FSC reviews a proposal to cap major shareholders’ stakes in crypto exchanges at around 15% to 20%, a measure that has drawn resistance from exchange operators and raised concerns within the ruling Democratic Party. Read more

South Korean crypto exchange Coinone has reportedly begun selling major shareholder stakes, with Coinbase rumored to be eyeing a strategic entry. Coinone, one of a handful of regulated South Korean cryptocurrency exchanges, is reportedly up for sale, with both local financial institutions and foreign exchanges among the rumored bidders. The company has begun a process to sell the stake held by chairman Cha Myung-hoon, who controls 53.4% of the company, local news agency Seoul Economic Daily reported on Sunday. “We are discussing partnerships, including equity investments, with overseas exchanges and domestic financial institutions,” Coinone confirmed to the outlet, adding that no final decision has been made. Read more

South Korea’s Gwangju prosecutors are probing missing seized Bitcoin after an audit, with phishing suspected after a wallet password was exposed. Local reports say funds were tied to illegal gambling and stored on a USB, prompting scrutiny of state custody, as regulators have expanded seizure rules. The post South Korea’s Seized Bitcoin Vanishes in Major Phishing Heist – Prosecutors Probe $300M Loss appeared first on Cryptonews.

South Korea is reportedly reviewing exclusive bank partnerships for crypto exchanges as regulators assess competition and prepare the Digital Asset Basic Act. South Korea’s financial regulators are reviewing a long-standing practice that effectively ties each cryptocurrency exchange to a single banking partner, as part of a broader examination of competition in the country’s crypto market, according to local media. Business media outlet the Herald Economy, citing government officials familiar with inter-agency discussions, said a review effort is being coordinated between the Financial Services Commission (FSC) and the Fair Trade Commission as policymakers evaluate whether existing practices contribute to market concentration.  Although the “one exchange–one bank” model is not explicitly codified in South Korean laws, it emerged in practice due to Anti-Money Laundering (AML) and customer due diligence requirements.  Read more

South Korea’s customs agency charged three suspects over a more than $100 million crypto-linked remittance scheme using WeChat Pay and Alipay, per Yonhap. South Korean authorities have uncovered an underground remittance operation that moved roughly 150 billion won (about $100 million to $110 million) through digital assets, according to local media reports. The Korea Customs Service has referred three suspects for prosecution, including a Chinese man in his 30s, on charges of violating the Foreign Exchange Transaction Act, Yonhap News reported Monday. Over the past four years, the illicit operation has allegedly laundered more than $100 million collected through WeChat Pay and Alipay, which was converted into cryptocurrencies through overseas exchanges and transferred into South Korean wallets before being converted back to fiat currency. Read more

Google will require proof of FIU registration acceptance for crypto apps, raising compliance hurdles for offshore exchanges serving South Korean users. Google is rolling out updated crypto app requirements in South Korea, a move that may significantly restrict access to offshore crypto exchanges by tying app availability to local regulatory clearance.  According to South Korean media outlet News1, starting Jan. 28, crypto exchange and wallet apps listed on Google Play in South Korea must upload documentation proving that their Virtual Asset Service Provider (VASP) registration with the country's Financial Intelligence Unit (FIU) has been accepted.  Google reportedly clarified that developers listing crypto exchange and custodial wallet apps must upload proof of completed FIU registration acceptance through its developer console.  Read more

South Korea's 2026 Economic Growth Strategy includes spot Bitcoin ETF introduction following active trading in US and Hong Kong markets, while phase-two digital asset legislation establishing stablecoin regulatory frameworks remains stalled over governance disputes as authorities impose ₩27.3 billion Korbit fine and prepare 24-hour forex trading expansion starting July. The post South Korea to Allow Spot Bitcoin ETFs in 2026 Growth Plan appeared first on Cryptonews.

The ruling confirms that Bitcoin in South Korean exchange accounts is an “object of seizure” under criminal law, aligning Seoul with US and EU enforcement practices. South Korea’s Supreme Court handed down its first explicit ruling that Bitcoin held in centralized exchanges can be seized by investigators, marking a notable shift in how exchange‑custodied crypto is treated under criminal law.  In a decision on Dec. 11, 2025, and disclosed via the court’s official bulletin, the court upheld the seizure of 55.6 Bitcoin (BTC) held in a Korean exchange account by a suspect under a money laundering investigation. Bitcoin is now an “object of seizure” under the Criminal Procedure Act because it is electronic information with independent manageability, tradability and economic value.  Read more

The proposal highlights South Korea’s push to align crypto oversight with securities markets, raising stakes for exchanges and traders alike. South Korea’s financial authorities are reportedly weighing whether to allow regulators to preemptively freeze crypto accounts suspected of price manipulation. The Financial Services Commission (FSC) is reviewing the introduction of a payment suspension system that would block transactions before suspects launder potentially illicit gains, local outlet Newsis reported Tuesday. The measure would mirror tools already used in the country’s stock market, where authorities can freeze accounts suspected of manipulation before profits are cashed out. Read more

Korea Exchange chairman Jeong Eun-bo pledged to launch crypto ETFs and extend trading to 24/7 operations, but the Financial Services Commission and Bank of Korea remain locked in a prolonged dispute over stablecoin issuance that has stalled South Korea's comprehensive digital asset framework. The post South Korea’s Top Exchange Says It’s Ready for Bitcoin ETFs, But Regulators Still Stalling appeared first on Cryptonews.

With trading-hour extensions and digital finance upgrades underway, Korea Exchange is positioning for crypto ETFs while approvals remain stalled. South Korea’s securities and derivatives exchange operator, Korea Exchange (KRX), plans to increase its new investment products, including crypto exchange-traded funds (ETFs) and derivatives, as part of a broader push to modernize capital markets.  Speaking at the first trading day ceremony of the new year, KRX chairman Jeong Eun-bo signaled the exchange was operationally prepared to support crypto ETFs, even as regulators continued to deliberate whether such products could be approved under existing securities regulations.  Jeong framed the move as part of South Korea's efforts to move beyond the “Korea discount,” a phenomenon where domestic stocks trade at lower valuations than global peers. The dynamic is different in crypto, where Bitcoin often trades at a premium on local exchanges compared with overseas platforms. Read more

The introduction of a stablecoin bill pioneered by South Korean President Lee Jae-myung will reportedly be delayed into 2026 after concerns about issuers. South Korean lawmakers have reportedly delayed submission of a cryptocurrency bill that could allow the issuance of domestic stablecoins as key issues remain unresolved. According to a Tuesday Yonhap News report, officials in South Korea’s government were continuing to work on the Digital Asset Basic Act, but expected to submit the bill sometime in 2026. The reported delay was due to “major issues that raise disagreements with relevant organizations, including stablecoin issuers.” The bill, proposed by the country’s ruling Democratic Party in June, would permit the issuance of stablecoins pegged to the won and is expected to boost South Korea’s crypto market. Under the proposed bill, stablecoin issuers would reportedly be required to entrust all their reserve assets to authorized custodies, like banks. Read more

South Korea is expanding its crypto Travel Rule to cover transfers under ₩1 million (~$680), requiring exchanges to track sender and recipient IDs, close loopholes, and prevent illicit activities. The post South Korea to Tighten Crypto Tracking on Transfers Under 1 Million Won — New Rules Imminent appeared first on Cryptonews.

Mirae Asset is in talks to acquire Korean crypto exchange Korbit via its consulting arm, as traditional finance targets licensed crypto infrastructure. The post South Korea’s Mirae Asset Group Explores $100M Takeover Of Crypto Exchange Korbit appeared first on Cryptonews.

South Korea plans to hold crypto exchanges to the same no-fault compensation standards as banks after an Upbit hack exposed major gaps in consumer protection. South Korea is preparing to impose bank-level, no-fault liability rules on crypto exchanges, holding exchanges to the same standards as traditional financial institutions amid the recent breach at Upbit. The Financial Services Commission (FSC) is reviewing new provisions that would require exchanges to compensate customers for losses stemming from hacks or system failures, even when the platform is not at fault, The Korea Times reported on Sunday, citing officials and local market analysts. The no-fault compensation model is currently applied only to banks and electronic payment firms under Korea’s Electronic Financial Transactions Act. Read more