South Korea
Region: east-asiaLegal
Cryptocurrency is legal in South Korea, regulated primarily by FSC. Legal. A 20% tax on crypto gains above a threshold has been legislated but delayed.
Regulatory Framework
Trading & ownership
Legal. Trades must be conducted via real-name verified accounts on registered exchanges.
Payments & Commerce
Allowed, though not widely adopted or encouraged by central banking authorities.
Mining Operations
Legal under general business regulations with no special restrictions.
Exchange Licensing & AML/KYC
Required. Exchanges must register with the Financial Intelligence Unit (FIU) under the FSC. KYC: Mandatory real-name verification linked directly to local bank accounts.. AML: Governed by the Act on Reporting and Using Specified Financial Transaction Information.
Taxation
Capital Gains Tax
A 20% tax on crypto gains above a threshold has been legislated but delayed.
Income Tax (Staking/Mining)
Active trading gains are subject to miscellaneous income tax rules.
VAT & Sales Tax
Crypto transaction fees are exempt from value-added tax.