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🇰🇷 South Korea

A domestic-only, bank-gated regime where AML registration is easy on paper but the real-name account requirement makes retail market entry nearly impossible for foreign exchanges

Last verified 2026-08-15 Next review 2026-08-29

Data verified: oldest cell 47 days ago (verified 2026-07-02). Individual cells show their own verification date below.

Licence type

VASP registration (not a discretionary licence) under the Act on Reporting and Using Specified Financial Transaction Information (the 'FTRA'/AML Reporting Act, amended effective 25 Mar 2021), which requires: (1) ISMS certification from KISA (Korea Internet & Security Agency); (2) for KRW fiat on/off-ramp services, a bank-issued real-name verified account; plus fit-and-proper/AML program requirements. Layered on top since 19 July 2024 is the Act on the Protection of Virtual Asset Users (VAUPA), which adds customer-asset segregation, insurance/reserve, and market-abuse rules but does not replace the underlying FTRA registration.

Verified 3 days agoSource: FSC (English): fsc.go.kr/eng/pr010101/82683 and fsc.go.kr/eng/pr010101/82520; law.go.kr FTRA text: law.go.kr/LSW/lsInfoP.do?lsiSeq=124054, https://www.fsc.go.kr/eng/pr010101/82683

Regulator

Financial Services Commission (FSC), Korea's top financial policymaker; Korea Financial Intelligence Unit (KoFIU, also referred to as FIU), an FSC-subordinate unit established 2001 under the FTRA that receives and processes VASP registrations and AML reporting; day-to-day supervision/inspection is delegated to the Financial Supervisory Service (FSS), which set up dedicated Virtual Asset Supervision/Investigation bureaus (announced 29 Nov 2023). FSC retains final sanctioning authority.

Verified 3 days agoSource: FSC: fsc.go.kr/eng/ab010101; KoFIU: kofiu.go.kr/eng/intro/about.do and kofiu.go.kr/eng/regime/framework.do, https://www.fsc.go.kr/eng/ab010101

Recent changes

The 20 Aug 2026 tightening is now identifiable as Act No. 21358 (amendment to the FTRA/AML Reporting Act), promulgated 19 Feb 2026 and taking effect 20 Aug 2026. It removes the KRW 1,000,000 Travel Rule de minimis threshold and separately expands VASP entry screening: adds a statutory definition of major shareholders, extends fit-and-proper disqualification checks to major shareholders, adds financial condition, social credibility, organisational, staffing and IT review factors, and authorises KoFIU to attach conditions when accepting a VASP report. Existing registered VASPs must re-report under the amended Article 7 within 3 months of the effective date (by approximately 20 Nov 2026). Separately, a Foreign Exchange Transactions Act amendment creating cross-border VASP registration passed 7 May 2026 (effective date disputed, 2 Aug vs 2 Dec 2026). The FSC's implementing-decree package (public comment 30 March to 11 May 2026) adds entry screening for VASP re-reports: a debt-ratio ceiling of 200 per cent excluding customer deposits, a three-year clean default record, fit-and-proper tests for officers and major shareholders, and AML staffing requirements; it removes the KRW 1,000,000 Travel Rule de minimis entirely and treats cross-border transfers of KRW 10,000,000 or more to foreign VASPs or private wallets as automatically suspicious.

Verified 17 days agoSource: FSC press release (enforcement decree package): https://www.fsc.go.kr/no010101/86589 ; FSC press release (Act No. 21358): https://fsc.go.kr/no010101/86589 ; KoFIU: https://kofiu.go.kr/eng/law/law.do

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