South Korea Clamps Down on Crypto: New Regulations Hit the Market

Seoul’s financial watchdogs just turned up the heat—again. Fresh crypto rules are rolling out, tightening oversight on exchanges and leaving traders scrambling to adapt.

No more wild west: The Financial Services Commission (FSA) is cracking down hard, with stricter KYC requirements and heavier scrutiny on cross-border transactions. Expect delays—and paperwork.

Meanwhile, local exchanges are sweating. Compliance costs will spike, and some smaller players might not survive. But hey, at least the regulators are pretending this will ’protect investors’ instead of just control capital flows—classic finance theater.

Starting June 2025, South Korea will allow non-profits to sell donated cryptocurrencies and let exchanges convert user fees paid in crypto. At the same time, the Financial Services Commission (FSC) is stepping up efforts to prevent money laundering by enforcing stricter KYC (Know Your Customer) rules. Exchanges and banks must improve their identity checks and anti-money laundering controls ahead of lifting the institutional ban next month. These changes aim to make the crypto market safer and more transparent.