South Korea started 2025 with political disturbances, regulation heat and a crypto market finally brought to the heel – or at least forced to grow.
The country closed 2024 in trouble following President Yoon Suk Yeol’s Botched Martial Law stunt in December.
Authorities later spent the first quarter drawing lines in the sand as financial guards slapped cryptocurrency exchanges with probes and raised the ban on corporate trading accounts. Meanwhile, the Crypto Adoption Hit Record Highs while cooler in trade.
Here is a breakdown of major development that shapes the South Korean crypto sector in Q1 of 2025.
South Korea’s entrepreneurs have been given another two -year tax exclusion
January 1 – Crypto tax has been postponed
A planned 20% Crypto tax tax did not take place on January 1 after lawmakers agreed to delay it until 2027. This is the third postponement: first from 2022 to 2023, then again until 2025.
Related: Crypto problem continues with the new regulations in spite of new regulations
The latest delay, reached The agreed bipartisan in late 2024Arrived in the midst of economic uncertainty and political uncertainty. Lawmakers have cited the fears of investing in the investor exchanges, pursuit-trace-track challenges, and transferring national priorities to lifting Yoon’s martial law failure and subsequent impeachment.
January 14 – Warning against North Korea’s crypto hackers
US, Japan and South Korea have published a joint statement on North Korean crypto hacks. Crypto companies have been warned to guard against these malware and fake freelancers. The Lazarus Group, the sponsored Cyber Threat Group, was named as a chief suspect in some of the leading hacks in 2024, such as $ 230-million hack in India’s Wazirx And the $ 50-million hack against upbitSouth Korea’s largest crypto exchange.
January 15 – Companies are waiting for the edges for crypto greenlight
South Korea’s virtual asset committee, a body of crypto policy coordination under the Financial Services Commission (FSC), held its second meeting. FSC is widely expected to approve corporate access to trading accounts with local exchanges. Despite the popular demand, the FSC will be held in making an official decision, citing the need for further review.
Instead, the FSC announced investor protection against price manipulation and stable stablecoin administration.
January 16 – First Implementation of Manipulating in the Crypto market
Authorities in South Korea have conquered a businessman in the first prosecution of the pump-and-dump under the Virtual Asset User Protection Act, the new crypto law effectively since July 2024.
In the meantime, upbit received a notice to the suspension for the unlucky Violation of your customer’s requirements (KYC) In more than 500,000 instances, regulators are urging the restriction of new user registrations.
January 23 – UPBIT, BITHUMB COMPENSATE SUPPORTS AFTER THE MARTIAL LAW SERVICE SERVICE
The upbit and rival Exchange Bithumb announced the plans to Become users following service interruptions already -trigger of Surprise of National Martial National Law Surprise On December 3, 2024. The shocking move caused panic in financial and crypto markets, leading to a traffic advance that hurts local trading platforms.
Finally opened the South Korea Crypto world to corporations
Feb. 13 – Charity and Universities get the first DIBS in accessing Corporate Crypto
FSC announced its long -awaited plan Allow corporate entities to open crypto trading accounts In phases in late 2025. Rollout will require businesses to use “real-name” accounts and comply with KYC and anti-money laundering (AML) regulations. Charity and universities are first in line and will be allowed to sell their crypto donations starting in the first half of the year.
The real-name transaction in the South Korean financial system, introduced in 1993, was designed to combat tax prevention and money losses by ordering all bank accounts to be opened under verified legal names using national IDs.
Related: Deals to market manufacturers quietly kills crypto projects
Crypto trading exploded in 2017, driven in part of Anonymous account from businesses, foreign and minor. Financial authorities responded by ordering crypto exchanges with domestic banks and offer FIAT services only through verified real account names. So far, only five exchanges have met the requirements.
Because there is no regulation framework for real-name corporate accounts, this policy can effectively close both overseas users and domestic companies from trading in South Korean exchanges. The new roadmap aims to fix that by creating a formal structure for institutional participation under lighter compliance criteria.
Feb. 21 – SERIAL FRAUDSTER REQUIRED
Police re -reviewed “Jon Bur Kim,” identified by the surname of the surname, for allegedly reproducing 68 billion winners (approximately $ 48 million) in a crypto scam involving token Artube (ATT). He is said to have used false advertising, pump-and-dump tactics and washed trading to manipulate the market.
This is not Park’s first brush with the law. He was previously accused of a 14-billion-won (around the $ 10 million) case of fraud and was on bail when he launched the ATT.
Feb. 25 – Upbit operator Dunamu is slapped
The country’s Financial Intelligence Unit (FIU) formally found Dunamu, Upbit operator, of regulatory action. Penalties are tied to failures in compliance with KYC and dealing with unregistered foreign exchanges. The fiu released a slight suspension in businessTightening upbit from processing new deposits and withdrawing customers within three months.
Feb.
South Korean prosecutors formally launched the Virtual Asset Crime Joint Investigation Division, following one year and seven months as a temporary operation. As a non-permanent unit since July 2023, the Task Force accused 74 individuals, secured 25 arrests, and recovered more than 700 billion winners (around $ 490 million) in non-prohibited gains. The 30-year task force includes prosecutors, regulatory staff and specialists.
Feb.
Dunamu said it filed a lawsuit against FIU in Challenge the penalties imposed on the exchange.
Bitcoin ETF Next to Checklist for South Korean Crypto Space
March 5 – Considering Bitcoin ETF Ban
FSC initiated evaluating legal paths to allow Bitcoin (Btc) Funds exchanged by exchange (ETF), cited The emerging approach to Japan’s regulation as a potential model. It marks a well -known move from South Korea’s previous opposition to Crypto -based ETFs.
The Capital Markets Act does not recognize cryptocurrencies as the right -fashioned proposed possessions for ETFs. However, in 2024, Lobbying efforts from major domestic brokerages have intensified Amongst the rising client demand, especially after Bitcoin ETF spots have been approved in the US.
While the analysis remains in its early stages, the regulators no longer eliminate the possibility directly.
March 21 – Cracking on unregistered exchanges begins
FIU combined a list of illegal foreign exchanges and moved to block access through app stores and ISPs. In addition, the agency warned criminal penalties for trading platforms operating without a license.
https://www.youtube.com/watch?v=ndv0rFehetq
March 26 – 17 Exchange Apps -Block (including Kucoin and Mexc)
Google Play Deleted 17 Unlicensed Crypto exchange apps to South Korea at the request of the regulators. FIU said it also worked with Apple to block unauthorized crypto platforms.
March 27-Upbit scores are three-month-old rest
A South Korean court Temporarily raised Feb 25 with a slight business suspension imposed on the Crypto Exchange Upbit of FIU. The court’s decision allows Upbit to continue delivering new users while reviewing the case.
Looking forward to going South Korea Crypto from Crackdown to Q1 to Campaign Trail to Q2
As the March ended, more than 16 million investors – Approximately one third of the South Korean population – Crypto accounts will be held, exceeding 14.1 million domestic stock entrepreneurs. But that advances in adoption came as trading activity cooled down. Upbit, the dominant exchange of the country, has seen volumes fall 34%, dropping from $ 561.9 billion to Q4 2024 to $ 371 billion in Q1 2025, according to Co ringecko.
By mid-April, cracking still gets steam. Apple followed Google lead Removing offshore exchange apps from its storeWhile prosecutors filed another round of market manipulation charges.
The South Korean crypto industry is now arguing with lighter policies, rising institutional expectations and a government is no longer content to be watched from the sideways.
All of this opens up leading an early presidential election in June, subsequently Yoon’s impeachment. Crypto plays a visible role in The successful election campaign in the Yoon President’s election and is expected to remain a major issue with voters.
A candidate in the upcoming election, former prosecutor Hong Joon-PYO of the People Power Party, recently promised to overhaul crypto regulations in accordance with the Trump administration’s pro-industrial stance, local media reported. Despite the promise, Hong’s understanding of technology is talked about as he admitted To not know what a central digital currency is.
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