South Korea | Crypto

Google will require proof of FIU registration acceptance for crypto apps, raising compliance hurdles for offshore exchanges serving South Korean users. Google is rolling out updated crypto app requirements in South Korea, a move that may significantly restrict access to offshore crypto exchanges by tying app availability to local regulatory clearance.  According to South Korean media outlet News1, starting Jan. 28, crypto exchange and wallet apps listed on Google Play in South Korea must upload documentation proving that their Virtual Asset Service Provider (VASP) registration with the country's Financial Intelligence Unit (FIU) has been accepted.  Google reportedly clarified that developers listing crypto exchange and custodial wallet apps must upload proof of completed FIU registration acceptance through its developer console.  Read more

South Korea's 2026 Economic Growth Strategy includes spot Bitcoin ETF introduction following active trading in US and Hong Kong markets, while phase-two digital asset legislation establishing stablecoin regulatory frameworks remains stalled over governance disputes as authorities impose ₩27.3 billion Korbit fine and prepare 24-hour forex trading expansion starting July. The post South Korea to Allow Spot Bitcoin ETFs in 2026 Growth Plan appeared first on Cryptonews.

The ruling confirms that Bitcoin in South Korean exchange accounts is an “object of seizure” under criminal law, aligning Seoul with US and EU enforcement practices. South Korea’s Supreme Court handed down its first explicit ruling that Bitcoin held in centralized exchanges can be seized by investigators, marking a notable shift in how exchange‑custodied crypto is treated under criminal law.  In a decision on Dec. 11, 2025, and disclosed via the court’s official bulletin, the court upheld the seizure of 55.6 Bitcoin (BTC) held in a Korean exchange account by a suspect under a money laundering investigation. Bitcoin is now an “object of seizure” under the Criminal Procedure Act because it is electronic information with independent manageability, tradability and economic value.  Read more

The proposal highlights South Korea’s push to align crypto oversight with securities markets, raising stakes for exchanges and traders alike. South Korea’s financial authorities are reportedly weighing whether to allow regulators to preemptively freeze crypto accounts suspected of price manipulation. The Financial Services Commission (FSC) is reviewing the introduction of a payment suspension system that would block transactions before suspects launder potentially illicit gains, local outlet Newsis reported Tuesday. The measure would mirror tools already used in the country’s stock market, where authorities can freeze accounts suspected of manipulation before profits are cashed out. Read more

Korea Exchange chairman Jeong Eun-bo pledged to launch crypto ETFs and extend trading to 24/7 operations, but the Financial Services Commission and Bank of Korea remain locked in a prolonged dispute over stablecoin issuance that has stalled South Korea's comprehensive digital asset framework. The post South Korea’s Top Exchange Says It’s Ready for Bitcoin ETFs, But Regulators Still Stalling appeared first on Cryptonews.

With trading-hour extensions and digital finance upgrades underway, Korea Exchange is positioning for crypto ETFs while approvals remain stalled. South Korea’s securities and derivatives exchange operator, Korea Exchange (KRX), plans to increase its new investment products, including crypto exchange-traded funds (ETFs) and derivatives, as part of a broader push to modernize capital markets.  Speaking at the first trading day ceremony of the new year, KRX chairman Jeong Eun-bo signaled the exchange was operationally prepared to support crypto ETFs, even as regulators continued to deliberate whether such products could be approved under existing securities regulations.  Jeong framed the move as part of South Korea's efforts to move beyond the “Korea discount,” a phenomenon where domestic stocks trade at lower valuations than global peers. The dynamic is different in crypto, where Bitcoin often trades at a premium on local exchanges compared with overseas platforms. Read more

The introduction of a stablecoin bill pioneered by South Korean President Lee Jae-myung will reportedly be delayed into 2026 after concerns about issuers. South Korean lawmakers have reportedly delayed submission of a cryptocurrency bill that could allow the issuance of domestic stablecoins as key issues remain unresolved. According to a Tuesday Yonhap News report, officials in South Korea’s government were continuing to work on the Digital Asset Basic Act, but expected to submit the bill sometime in 2026. The reported delay was due to “major issues that raise disagreements with relevant organizations, including stablecoin issuers.” The bill, proposed by the country’s ruling Democratic Party in June, would permit the issuance of stablecoins pegged to the won and is expected to boost South Korea’s crypto market. Under the proposed bill, stablecoin issuers would reportedly be required to entrust all their reserve assets to authorized custodies, like banks. Read more

South Korea is expanding its crypto Travel Rule to cover transfers under ₩1 million (~$680), requiring exchanges to track sender and recipient IDs, close loopholes, and prevent illicit activities. The post South Korea to Tighten Crypto Tracking on Transfers Under 1 Million Won — New Rules Imminent appeared first on Cryptonews.

Mirae Asset is in talks to acquire Korean crypto exchange Korbit via its consulting arm, as traditional finance targets licensed crypto infrastructure. The post South Korea’s Mirae Asset Group Explores $100M Takeover Of Crypto Exchange Korbit appeared first on Cryptonews.

South Korea plans to hold crypto exchanges to the same no-fault compensation standards as banks after an Upbit hack exposed major gaps in consumer protection. South Korea is preparing to impose bank-level, no-fault liability rules on crypto exchanges, holding exchanges to the same standards as traditional financial institutions amid the recent breach at Upbit. The Financial Services Commission (FSC) is reviewing new provisions that would require exchanges to compensate customers for losses stemming from hacks or system failures, even when the platform is not at fault, The Korea Times reported on Sunday, citing officials and local market analysts. The no-fault compensation model is currently applied only to banks and electronic payment firms under Korea’s Electronic Financial Transactions Act. Read more

South Korea has intensified work on stablecoin regulation, setting a deadline for a draft bill as parties debate bank-led or fintech-led issuance, new AML and travel rule obligations, and how delays may affect its position against US and EU frameworks. The post South Korea’s Stablecoin Bill Faces Dec. 10 Deadline – or Lawmakers Act Alone appeared first on Cryptonews.

South Korean lawmakers set a Dec. 10 deadline for a stablecoin regulation draft, warning they’ll legislate independently if regulators miss the deadline. South Korean lawmakers are pressing financial regulators to deliver a draft stablecoin bill by a deadline set for later this month, as disagreements over the role of banks continue to stall progress. According to a Monday report by a local news outlet, Maeil Business Newspaper, South Korea’s ruling party sent a “last-minute notice” to financial regulators to submit a stablecoin regulatory framework draft by Dec. 10. Kang Joon-hyun, a lawmaker from the Democratic Party, said, “If the government bill does not come over within this deadline, we will take a drive through legislation by the secretary of the political affairs committee.” If it is delivered in time, he expects the bill will be discussed at the extraordinary session of the National Assembly in January 2026. Read more

South Korea will extend its crypto Travel Rule to cover sub-$700 transactions, closing a loophole used to evade identity checks. The post South Korea to Extend Crypto Travel Rule to Sub-$700 Transactions in AML Clampdown appeared first on Cryptonews.

South Korea’s AML overhaul introduces stricter reporting, bans offenders from owning VASPs and implements preemptive freezes to prevent illicit crypto flows. South Korea is preparing one of its toughest Anti-Money Laundering (AML) crackdowns as it plans to expand its crypto Travel Rule to cover transactions under 1 million won ($680). According to a Yonhap News report, the chairman of the country’s Financial Services Commission (FSC), Lee Eok-won, revealed the plans to the National Assembly’s Legislation and Judiciary Committee on Wednesday, saying that the government will crack down on money laundering activities that exploit crypto transactions.  “We will crack down on crypto money laundering […] expanding the Travel Rule to transactions under 1 million won,” he said, according to a translated version of his comments. Read more

Terraform Labs co-founder Do Kwon asked a US court to limit his prison term to five years as he faces a separate case in South Korea. Terraform Labs co-founder Do Kwon asked a US judge to cap his prison time at five years for his role in the collapse of the Terra ecosystem, which erased about $40 billion from crypto markets in 2022. In a court filing on Wednesday, Kwon argued that a longer term would be excessive given the punishment he has already served and the penalties he has agreed to accept, according to Bloomberg. Kwon pleaded guilty in August to two counts of wire fraud and conspiracy to defraud after being extradited from Montenegro, where he had been detained. His lawyers said he had spent almost three years behind bars, “with more than half that time in brutal conditions in Montenegro,” and that he had already paid a heavy personal and financial price. Read more

South Korea’s largest crypto exchange halted services and shifted assets to cold storage after detecting unauthorized withdrawals.

Naver Financial, the fintech arm of South Korean internet giant Naver, is preparing to roll out a stablecoin wallet in Busan. The post South Korea’s Naver to Launch Stablecoin Wallet With Hashed and BDAN appeared first on Cryptonews.

Regulators and the Bank of Korea remain at odds over bank dominance in issuing won-backed stablecoins, stalling a long-awaited framework expected this year. South Korea is likely to end the year without a framework for locally issued stablecoins, amid ongoing disputes over the role of banks in stablecoin issuance. The country’s central bank, the Bank of Korea (BOK), and other financial regulators have clashed over the extent of banks’ involvement in issuing Korean won-backed stablecoins, delaying a framework widely expected to arrive in late 2025, the Korea JoongAng Daily reported Tuesday. According to the BOK, a consortium of banks should own at least 51% of any stablecoin issuer seeking regulatory approval in South Korea, while regulators are more open to the involvement of diverse industry players. Read more

The Bank of Korea has warned of depegging threats for won-denominated stablecoins, questioning if private issuers can ensure trust and pointing to past stablecoin failures. The post Stablecoin Fear Spreads: South Korea’s Central Bank Warns of Depeg Threat, Urges Bank Safeguards appeared first on Cryptonews.

South Korea reportedly flagged a record 36,684 suspicious crypto transactions in 2025, surpassing the combined total of the past two years. South Korean authorities have reportedly flagged a record number of suspicious crypto transactions this year, with the total already surpassing the combined numbers of the past two years.  Citing Financial Intelligence Unit (FIU) data provided to Representative Jin Sung-joon and the Korea Customs Service (KCS) statistics, Yonhap News reported that local virtual asset service providers (VASPs) filed 36,684 suspicious transaction reports (STRs) between January and August 2025.  STRs are one of South Korea’s core Anti-Money Laundering (AML) tools. Under the country’s laws, financial institutions, casinos and VASPs must file STRs when they have reasonable grounds to suspect that the funds involve criminal proceeds, money laundering or terrorist financing.  Read more