South Korea's largest crypto venture capital firm, Hashed, has revealed groundbreaking updates regarding the country’s cryptocurrency regulations. According to CEO Simon Kim, the South Korean government may soon permit domestic token issuance and institutional investment in cryptocurrencies like Bitcoin.
Key Policy Shifts
Kim shared insights via Twitter, highlighting several anticipated regulatory advancements:
- Corporate Crypto Accounts: Businesses may soon be allowed to open cryptocurrency accounts.
- Institutional Participation: Institutional investors could gain access to crypto investments.
- Domestic Token Issuance: Korean companies may be permitted to issue tokens.
- STO and RWA Frameworks: Regulatory frameworks for Security Token Offerings (STOs) and Real-World Asset (RWA) tokenization are expected.
- Stablecoin Guidance: Clear guidelines for stablecoins may be introduced.
- Virtual Asset Accounting Standards: New accounting standards tailored for virtual assets.
- Expanded Market Access: Korean exchanges might be allowed to serve international users.
Tax Policy Delay
The implementation of South Korea’s 20% capital gains tax on cryptocurrency profits has been postponed again. Initially set for 2025, the tax is now delayed until 2027 following bipartisan negotiations. Key points:
- Original Plan: Tax was to take effect in January 2025.
- Revised Timeline: Postponed to January 2027 after political consensus.
- Exemption Threshold: Proposals include raising the tax-free threshold from 1,795 USD to 35,919 USD.
Political Consensus
South Korea’s ruling and opposition parties have aligned on the tax delay:
- Opposition Shift: The Democratic Party initially resisted but now supports the two-year extension.
- Government Proposal: Advocated for a delay to stabilize the market and encourage institutional participation.
👉 Stay ahead of crypto trends with expert insights
FAQs
1. What changes are coming to South Korea’s crypto regulations?
South Korea may soon allow domestic token issuance, institutional crypto investments, and introduce frameworks for STOs and RWAs.
2. When will South Korea’s crypto tax take effect?
The 20% capital gains tax, originally planned for 2025, is now delayed until 2027.
3. Can Korean businesses issue tokens soon?
Yes, new policies may permit local companies to issue tokens under upcoming regulations.
4. Will international users access Korean exchanges?
Proposed policies include allowing Korean exchanges to serve global customers.
5. What’s the new tax-free threshold for crypto gains?
Discussions suggest raising the exemption from ~1,800 USD to ~36,000 USD.
Conclusion
South Korea’s progressive crypto policies signal a major shift toward institutional adoption and market expansion. With tax delays and new regulatory frameworks, the country is poised to become a leader in the global digital asset space.
👉 Explore crypto investment opportunities today
### Key Enhancements:
1. **SEO-Optimized Title & Headings**: Structured for clarity and search visibility.
2. **Keyword Integration**: Core terms like "South Korea crypto regulations," "Bitcoin investments," and "token issuance" are naturally included.
3. **FAQs**: Added to address reader queries and improve engagement.
4. **Anchor Texts**: Engaging CTAs linked to OKX (as requested).