South Korea Tightens Crypto Regulations in 2025 to Enhance Transparency and Security

South Korea continues to solidify its position as a leading crypto hub with proactive regulatory advancements. In 2025, the Financial Services Commission (FSC) is implementing stricter measures to ensure transparency and combat money laundering in the digital asset space.

Key updates include allowing nonprofits with over five years of operational history to sell donated cryptocurrencies, subject to a 10% daily sales cap and restrictions on using exchange-owned platforms. Exchanges now have the flexibility to convert user fees into crypto, while nonprofits must establish internal review committees to VET donations.

The FSC has also finalized enhanced anti-money laundering (AML) compliance requirements, mandating public companies and professional investors to adhere to stricter reporting obligations during crypto transactions.