South Korea’s FSC Supports Foreign Crypto Investors with Compliance Requirements Amid Regulatory Shift

Korean cryptocurrency regulations are undergoing a significant shift as local authorities examine the potential for foreign investment in the market. Kim Sung-jin, who heads the Virtual Asset Department at South Korea’s Financial Services Commission (FSC), has expressed support for foreign investors entering the domestic crypto landscape. However, he emphasized the necessity for local exchanges to enhance their anti-money laundering (AML) compliance protocols. Currently, stringent capital controls and the requirement for real-name accounts hinder non-resident trading activities within the country.

As the United States adopts a more crypto-friendly stance, South Korean regulators are reevaluating the existing limitations on cryptocurrency trading. The FSC remains vigilant, articulating concerns regarding the international compliance readiness of Korean exchanges, especially concerning the implementation of the Travel Rule. This regulation, which came into effect in 2022, mandates that exchanges gather and retain transaction data for transfers exceeding 1 million Korean won (approximately $680), with some platforms already adjusting this threshold to enhance compliance.