South Korea’s Financial Authorities to Permit Unrestricted Crypto Trading from June 2025

This regulatory update aims to enhance transparency and promote growth in the nation’s digital asset sector.

The Financial Services Commission (FSC) announced that registered non-profit entities and licensed exchanges will be exempt from certain trading restrictions imposed on individuals and for-profit companies. The new rules are set to take effect in June 2025, following the implementation of the Virtual Asset User Protection Act. This move is expected to streamline operations for exchanges and support non-profits in managing digital assets more efficiently.

The exemption will allow non-profits and exchanges to conduct transactions such as buying, selling, and holding digital assets without facing the same regulatory hurdles as other market participants. Industry experts believe this could improve liquidity and attract more institutional involvement in South Korea’s crypto market. The policy is also seen as a step towards aligning South Korean regulations with global standards, potentially making the country a more attractive hub for blockchain innovation. South Korea has maintained strict oversight of the crypto sector, including mandatory registration and exchange compliance requirements. 

The Virtual Asset User Protection Act, which comes into force in July 2025, aims to strengthen user protection and market integrity. Authorities have stated that the new exemption is designed to balance innovation with investor protection, ensuring that the sector can grow responsibly.

Market analysts have welcomed the move, noting that it could encourage more transparent and compliant operations among exchanges. Some experts caution that ongoing monitoring will be necessary to prevent misuse of the exemption by bad actors.

“This is a positive step for the industry, but robust oversight remains crucial,”

said a Seoul-based blockchain consultant.

Notably, South Korea’s ruling party plans to permit the trading of spot crypto ETFs by the end of 2025, allowing domestic investors exposure to digital assets like Bitcoin and Ethereum. 

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