The South Korean Financial Services Commission (FSC) has indicated that new crypto laws will come into effect in June 2025. The guidelines will enable non-profit groups to legally offload donated virtual assets for the first time, representing a significant policy shift.
Vice Chairwoman Kim So-young presided at the 4th Virtual Asset Committee meeting on May 1, where the finalized draft of the guidelines was adopted. The updated guidelines require exchanges and banks to strengthen customer verification and monitor funds more closely to prevent misuse.
The non-profit organizations would need to adhere to stringent criteria, including five or more years’ worth of audited financial reports. Such groups would need to establish an internal Donation Review Committee in order to monitor the source of the donation as well as proper utilization of the funds.
You can only donate virtual assets listed on at least three Korean won-based exchanges. They must be sold immediately upon receipt. The regulation maintains transparency and helps in the proper utilization of crypto donations for charity work.
The FSC has engaged stakeholders such as Good Neighbors, Seoul National University Development Foundation, and commercial banks towards building a solid review framework.
Exchanges limited to selling top 20 Crypto
Under the new rules, cryptocurrency exchanges may only sell crypto earned from user fees and must do so to cover operating expenses. Only exchanges registered under Korea’s Special Financial Transactions Act may participate. To avoid market disruption, only crypto assets ranking among the top 20 by market capitalization on five Korean exchanges are eligible for sale.
Exchanges cannot sell through their own platforms and must limit daily sales to no more than ten percent of the total intended volume. These measures minimize the chances of price manipulation and enhance the transparency process.
Approval from the board of directors is necessary for each sale, and public disclosure about the sales plan and outcomes is mandatory. FSC also updated transaction support practices in an effort to prevent price manipulation from zombie and meme coins. Exchanges now need stricter listing guidelines and minimum requirements for liquidity.
With these changes, South Korea hopes to balance the development in the cryptocurrency market with user protections and order in finance.
