🇰🇷 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
Data verified: oldest cell 1 day 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.
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.
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Passporting 🔒
MiCA CASPs approved 🔒
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Recent changes
The '20 Aug 2026 tightening' claim is confirmed and refers to removal of the KRW 1,000,000 de minimis threshold under Korea's crypto Travel Rule, via an amendment to the Enforcement Decree of the FTRA — all VASP-to-VASP transfers, regardless of size, will trigger originator/beneficiary data-collection obligations. Existing VASPs reportedly must re-register/re-report within 3 months of the effective date (~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); a 'Digital Asset Basic Act' (Phase 2, covering stablecoins, exchange ownership caps, and a possible lift of the 2017 ICO ban) remains a draft bill only, delayed by the June 2026 elections. Enforcement intensified in 2025-2026: Bithumb fined ~KRW 36.8bn with a 6-month partial suspension (March 2026, later stayed pending litigation); Coinone fined ~KRW 5.2bn (April 2026); Upbit fined ~KRW 35.2bn (Nov 2025); Korbit fined ~KRW 2.73bn (31 Dec 2025).
Difficulty rating 🔒
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Informational only, not legal advice. Entries marked as placeholder or awaiting verification must not be relied on. Confirm all requirements with South Korea's regulator and qualified local counsel before acting.