South Korea Tightens Crypto Regulations in 2025 with Focus on Transparency and AML Compliance

South Korea is advancing its regulatory framework for digital assets, reinforcing its position as a leading crypto hub. The Financial Services Commission (FSC) has introduced stricter measures for 2025, targeting transparency, security, and anti-money laundering (AML) compliance.

Nonprofits with over five years of operational history and verified audits are now permitted to sell donated cryptocurrencies, subject to a 10% daily sales cap and restrictions on using exchange platforms for liquidation. These organizations must establish internal review committees to ensure donation suitability and operational transparency.

Virtual asset exchanges gain flexibility by converting user fees into crypto, while banks face enhanced Know Your Customer (KYC) requirements. Public companies and professional investors are now mandated to adhere to AML obligations during crypto trading.