#SouthKoreaCryptoPolicy South Korea has a well-defined regulatory framework for cryptocurrency, with a focus on user protection, transparency, and market discipline. Here's an overview of the country's crypto policy:

*Regulatory Bodies*

- *Financial Services Commission (FSC)*: The primary regulatory body responsible for formulating policies and supervising Virtual Asset Service Providers (VASPs).

- *Korea Financial Intelligence Unit (KoFIU)*: Responsible for receiving and analyzing suspicious transaction reports from financial institutions, including VASPs ¹.

*Key Regulations*

- *Virtual Asset Service Providers (VASPs) Registration*: VASPs must register with the KoFIU and comply with anti-money laundering (AML) regulations.

- *AML Requirements*: VASPs must implement AML policies, conduct customer due diligence, and report suspicious transactions.

- *Travel Rule*: VASPs must share information about the originator and beneficiary of transactions exceeding a certain threshold.

- *Protection of Virtual Assets*: VASPs must manage customer assets separately, keep records of transactions, and have insurance plans or reserves to protect against hacking and network crashes.

- *Unfair Trade Practices*: VASPs are prohibited from insider trading, market manipulation, and fraudulent activities ¹ ².

*Taxation*

- *Capital Gains Tax*: 20% for individuals and 22% for corporations on profits from cryptocurrency sales.

- *Value-Added Tax (VAT)*: 10% on goods and services paid for with cryptocurrency ².

*Recent Developments*

- *Lifting of Institutional Crypto Investment Ban*: South Korea plans to lift its ban on institutional crypto investment, with a two-phase rollout starting in April.

- *Crypto-Friendly Leadership*: The country has elected a crypto-friendly leader, Lee Jae-myung, who made promises to appeal to the nation's 15 million crypto investors ³ ⁴.